Capitalism and Freedom - Chapter 4, International and Financial Trade Arrangements Summary & Analysis

This Study Guide consists of approximately 30 pages of chapter summaries, quotes, character analysis, themes, and more - everything you need to sharpen your knowledge of Capitalism and Freedom.

Capitalism and Freedom - Chapter 4, International and Financial Trade Arrangements Summary & Analysis

This Study Guide consists of approximately 30 pages of chapter summaries, quotes, character analysis, themes, and more - everything you need to sharpen your knowledge of Capitalism and Freedom.
This section contains 438 words
(approx. 2 pages at 400 words per page)
Buy the Capitalism and Freedom Study Guide

Chapter 4, International and Financial Trade Arrangements Summary and Analysis

International monetary issues and trade arrangements are an especially complex topic. However, the liberal cannot neglect it because it is the most serious short-run threat to liberty in the United States. Without solving the problem, the government will try to control the economy to solve it. Much economic freedom is lost following the control of foreign exchange.

Some governments make their currencies "inconvertible" which is to say it cannot be traded for any amount of another currency. In Friedman's day, conversion was still illegal, and at that time it had been illegal since 1933 to hold or to buy and sell gold. Government now controls the price of gold internationally and this benefits the government at the expense of the people.

Friedman then separates the two problems of the balance of payments...

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This section contains 438 words
(approx. 2 pages at 400 words per page)
Buy the Capitalism and Freedom Study Guide
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