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Monetary Reform and the Bellagio Group

Selected Letters and Papers of Fritz Machlup, Robert Triffin and William Fellner
Editors: Carol M Connell and Joseph Salerno
5 Volume Set: c.2000pp: April 2014 978 1 84893 393 4: 234x156mm: 550/$975

The Bellagio Group was founded by Fritz Machlup, William Fellner and Robert Triffin at a time of global economic crisis not unlike the one we face today. With its original network of thirty-two economists, it was the forerunner of the current Group of Thirty. The Bellagio Group comprised academics, policy makers, bankers and corporate leaders, who worked together with the aim of economic reform. Machlup, Fellner and Triffin led the Group in their attempts to identify the connecting principles between geopolitical, currency, business and social issues facing economies in the aftermath of the Second World War. Between 1964 and 1977 the Bellagio Group were instrumental in bringing together academics with leaders from the public and private sectors in a series of influential conferences. These meetings involved the most important economists in the world and focused on banking practices, as well as mechanisms to increase economic growth. This collection brings together the private correspondence and published papers of the Bellagio Groups founders to create a vivid picture of the personalities, issues, debates and compromises that led to the adoption of flexible exchange rates and a modified Triffin plan. The first three volumes are each devoted to the letters and unpublished papers of Machlup, Triffin and Fellner. The final two volumes focus on the conferences and publications of the Bellagio Group founders from 19631977.

Robert Triffin The Family of Robert Triffin

Contains over 300 rare texts, the majority of which are previously unpublished Source archives include Yale University, The Hoover Institution, Stanford University and the Banca Nazionale del Lavoro Editorial apparatus includes a substantial general introduction, volume introductions, headnotes and endnotes A consolidated index appears in the final volume

Carol M Connell is at the School of Business, Brooklyn College, CUNY Joseph Salerno is at is at PACE University and the Ludwig von Mises Institute



Selected Contents
Volume 1: Fritz Machlup
The Gold Standard, the Transfer Problem and Europe after WWI, 19301940: The Critics of the Goldstandard; Gold as a Factor in International Peace (1930s); Dollars without Cents (1930s); The Theory of Interest (1930s); What Are the Right Foreign Exchange Rates? (1930s); The Transfer Discussion in the Light of Recent Experience (1935); Austria as the Pawn of Europe (1936); The Stock Exchange as a Gauge of Credit Policy and a Regulator of Investment (1937); The Influence of Security Market Regulation upon Fluctuations of Investment, American Economic Association; Our Buried Gold, KGO Radio talk (1940) Restoring American Prosperity After WWII and the Theory of Foreign Exchange, 19451948: Financing American Prosperity, Paul T Homan and Fritz Machlup (1945); The Effects of Government Spending upon Employment (1945); Whats Best for the Competitive Enterprise System?, panel participation (1948) Balance of Payments, International Trade and Economic Development, 19491956: Three Concepts of the Balance of Payments, International Monetary Fund Seminar, Washington, D.C. (1949); The Elasticity Argument for Foreign Exchange Restrictions, remarks, International Trade Meeting (1949); Equilibrium in International Trade, series of five speeches (1951);. The Finance of Development in Poor Countries: Foreign Capital and Domestic Inflation, Economic Studies Quarterly (1956); Comment on E M Bernsteins Strategic Factors in Balance of Payments Adjustments, Conference on International Economics, Universities-National Bureau Committee for Economic Research (1956) Reform of the International Monetary System, 19621969: Proposals for Reform of the International Monetary System, prepared for the United States Congress, Joint Economic Committee, Subcommittee on International Exchange and Payments (1962); The Reasons for Divergent Prescriptions for the International Monetary System (1964); Discussion of Various Plans Inclusive of Those of Bernstein, Maudling, Posthuma and Triffin (1964); The Fascination of Gold: Comment on the Article Gold by Zay Jeffries, Proceedings of the American Philosophical Society (1965); Creating International Money (1966); The Efficiency of Partial Devaluations of the Dollar (1967); International Monetary Reform: Present Positions and the Chances for Agreement (1967); Statement re The 1968 Economic Report of the President, United States Congress, Joint Economic Committee, (1968); Notes on flexible exchange rates, Claremont, California (1969); The Forward-Exchange Market: Misunderstanding between Practitioners and Economists (1969) From SDRs to Managed Floating, 1970 1981: World Inflation, Conference paper, Paris (1971); The Expanded Role of SDRs and the Possibilities of an SDR Standard, Speech, Geneva (1972); The Dollar Fix, the Dollar Flex, and the Gold Boom (1973); Recent Experiences with Floating Currencies, Panel presentation, Paris (1974); Monetary Reform Is Back at Square One, New York Times (1975); Statement on the IMF Gold Agreement, United States Congress, Joint Economic Committee, Subcommittee on International Economics (1975); Discussion of Worries and Priorities and The Present International Monetary System, Claremont International Monetary Conference (1978); Commentary: The Outlook for the Dollar and Other International Assets, Discussion of the papers by Edward M Bernstein and Michele Fratiani, Conference on the International Monetary System under Stress (1980); The World Monetary Order, Speech, State Bank of Pakistan (1981)

Volume 2: Robert Triffin

Economic Conditions in Europe After WWII, Exchange Controls and Economic Stability The Future of Central Banking (1945); Economic and Financial Assistance to Belgium (1945); Memo to Governor Szymezak re Baron Boels Memorandum and Article (1946); Postwar Reform of Central Banking (1946); Institutional Developments in the Intra-European Monetary System (1950); Political Crises Delay Monetary Reconstruction in Europe (1952); An Irreverent Note on the Dimensions and Intractability of the European Dollar Gap (1953) Monetary Reconstruction and the European Payments Union Triffin EPU Proposals, 19471949: Pre-EPU Proposals to IMF (1949); The OEEC Plan for the Financing of Intra-European Payments (194849) with note on Triffins paper by EM Bernstein and JV Mladek; Multilateralization of European Payment Agreements Among Fund Members (1948); The Unresolved Problem of Financing European Trade (1947), Triffin with summary of Triffins IMF memoranda and proposals for multilateralization of intro-European credits and settlements, September 1947December 1949 IMF Reports: Meetings of the Working Party on Multilateral Compensation (1949); Outline of Proposed Intra-European Payments Plan (1949); Rough Notes on Discussion of the Payments Plan (1949); Continuation of Discussions on the 194950 Payments Plan (1949); General Comments of OEEC Countries on Functioning of 194849 Payments Plan (1949); Concrete Alternative Suggestions for the Working Out of the 194950 Payments Plan (1949); Failure of Intra-European Payments Negotiations (1949); Resumption of Payments Committee Meetings (1949); Agreement of Principle on 194950 Intra-European Payments (1949) Triffins Papers for ECA on EPU Negotiations: Remarks on a Trade Policy of ECA (1949); Letter to John Hulley, (ECA) re convertibility and transferability of currencies within Europe (1949); Secret, Triffin, undated, most likely December 1949 (To Henry Tasca); Stages of Economic Unification (1949); Draft memorandum on Intra-European Currency Transferability and Liberalization of Trade (1949); Council of Europe Committee on Economic Questions (1949); First List of Points for Discussion (1949); Comments on Mr. Friedmans Memorandum of December 27, 1949 on the ECA; The Belgian Compromise (1950); Overbys Report to the IMF on the European Clearing Union; Proposals for a European Clearing Union (1950); Illustrative Impact of UK Proposed Amendments with Relation to Swing and Fractional Gold Payments (1950); Gripps Statement (1950); EPU Handling of Conditional Aid and Drawing Rights (1950); Effect of Full Sterling Offsets (1950); Discussion of New Joint EPU Plan by Belgium, France, Italy and the Netherlands (1950); New Continental Proposals to UK on EPU (1960); The Position of Sterling in EPU (1950); Draft of planned memo on issues of IMF, ECA and OEEC Cooperation, (1950?); Gold Settlements under EPU (1950); Notes of Commercial Policy (1950) Balance of Payments, Trade and the Liquidity Debate The Gold Shortage, the Dollar Glut and the Future of Convertibility; The Crisis of the Dollar-Exchange Standard; The International Monetary Position of the United States (1959); The Twilight of the Gold Standard and the World Dollar Crisis; The Real Threat to the Dollar (1960); Oral Statement to the Joint Economic Committee of Congress (1960); The International Monetary Crisis: What Went Wrong? What Went Rights? Where are We Heading (1968); The Contribution of Regional Monetary Integration to Worldwide Monetary Reform (1968)

Volume 3: William Fellner

Balance of Payments and Limited Exchange Rate Flexibility, 19661973: Draft of chapter 1 in Maintaining and Restoring Balance in International Payments (1966); Rules of the Game (1966); On Limited Exchange Rate Flexibility, draft of chapter 5 in Maintaining and Restoring the Balance of International Payments (1966); Specific Proposal for Limited Exchange-Rate Flexibility (1970); A Realistic Note on Threefold Limited Flexibility of Exchange Rates, draft (1970); Controlled Floating and the Confused Issue of Money Illusion, draft of paper for Banca Nazionale del Lavoro Quarterly Review (1973) Inflation, Employment and Taxation, 19741977: Revisiting the Austrian Time Periods with Current Tax Policy in Mind, Conference on Tax Research, Department of the Treasury (1975); Monetary versus Monetarist Theories (1974); Testimony before the Committee on Ways and Means of the House of Representatives re capital shortage and tax policy (1975); Why Indexed Tax Systems Provide the Needed Frame of Reference, remarks at the US Civil Service Commission Executive Seminar on National Economy and Public Policy (1975); Draft letter to the editor of the New York Times on recession deficits and interest rates (1975); Lessons from the Failure of Demand-Management Policies (1976); Money Supply and the Budget: Current and Future Problems of Demand Management (1977); The Nature of Government Involvement in Economic Affairs and Democracys Prospects for Survival (1977); Problems to Keep in Mind When it Comes to Tax Reform (1977); Gearing Demand Management to Supply Behavior in a Market Economy (1977) Rational Expectations, Credibility and Demand Disinflation, 19781983: Appraising the Cost of Disinflation, paper for inclusion in Egon Sohmen Festschift (1978); Neo-Keynesianism, Monetarism and the Long and Short Run (1978); The Bearing of Risk Aversion on Movements of Spot and Forward Exchange Relative to the Dollar (1978); The Valid Core of Rationality Hypotheses in the Theory of Expectations (1980); Entrepreneurship in Economic Theory; Introductory Remarks on Demand Disinflation (1980); Gold and the Uneasy Case for Responsibly Managed Fiat Money (1981); An Appraisal of the State of Monetary Policy, paper prepared for Conference Board (1981); Discussion Paper on the Monetary Crisis (CSIS Conference) (1981); The Hazy Distinction between Voluntary and Involuntary Unemployment (1981); Gradualism versus Prompt and Full Demand Disinflation with Shock Reducers, draft of paper published by Group of Thirty as Shock Therapy or Gradualism? (1981); Views presented to the Gold Commission (1981); Criteria for Useful Targeting: Money Versus the Base and Other Variables (1982) ; The 1983 CEA Report: Back to Neo-Keynesianism?

Statement on International Monetary Policies, Jurg Niehans (1964); Triffin Survey: Rank in Order of Preference (Solutions to Monetary Reform); Triffin Poll on Adjustment Mechanism; Agreement and Disagreement in the Economists Prescriptions for the International Monetary System: An Inquiry by a Study Group of Nongovernmental Economists: First Progress Report (1964); Press release by Triffin and Oakshott (1964) The Assumptions Underlying Different International Monetary Proposals: The Gold Standard, Essentials of the Proposed System; Flexible Exchange Rates, Essentials of the Proposed System; Centralization of Monetary Reserves, Essentials of the Proposed System; The Multiple Reserve Currency System, Essentials of the Proposed System; A Synthetic Composite-Currency Plan (Bernstein Plan); Letter of Fellner to Machlup re the Conference on Monetary Reform, 16 March 1964; Third Conference on International Monetary Reform Press Release with outcomes; Proposals for International Monetary Reform; Third Conference on International Monetary Reform, Report; Machlups letter to member of the Group of 32 Economists re statements to be included in final report; Letter of Machlup to study group re revised statements on four alternative international monetary systems, May 1, 1964; Machlups Letter to members of the Group of 32 Economists with details on International Monetary Arrangements, June 15, 1964; Final Report on the Study of International Monetary Arrangements ... Sponsored by Princeton University with the Support of Grants from the Ford Foundation and the Rockefeller Foundation Joint Meetings of Academics and Officials 19641977: Correspondence between Machlup, Fellner, Otmar Emminger, Shepard Stone, Joseph Slater, Gottfried Haberler, Tibor Scitovsky, James Meade and Emile von Lennep. Documentation on conferences held at Torremolinos (1969), Taormina (1971), Cascais (1972), Vienna (1973), Princeton (1973), Versailles (1974), Basel (1975) and (1977) Burgenstock Conferences, 196870: Correspondence, list of participants, press releases and papers.

Volume 5: The Bellagio Group Conferences Publications of the Founders

Machlup Papers: The need for monetary reserves (1966); Credit facilities or reserve allotments? (1967); The transfer gap of the United States (1968); On terms, concepts, theories and strategies in the discussion of greater flexibility of exchange rates (1970); Euro-dollar creation: a mystery story (1970); The book value of monetary gold (1971); Euro-dollars, once again (1972); Euro-dollars, once again: a correction (1972); Exchangerate flexibility (1973); Different inflations have different effects on employment (1978) Triffin Papers: The problem of international monetary reform: major questions and prospective initial area of agreement (1964); The Evolution of the International Monetary System: Historical Reappraisal and Future Perspectives (1964); The Balance of Payments and the Foreign Investment Position of the United States (1966); The coexistence of three types of reserves assets (1967); On the creation of a European reserve fund (1969); The use of SDR finance for collectively agreed purposes (1971); The Community and the disruption of the world monetary system (1975); Europe and the money muddle revisited (1978)

Volume 4: The Bellagio Group Conferences Notes and Letters

The Bellagio Group Conferences 19631964: Letter from Machlup to Roy Harrod inviting his participation in an experiment (the first Bellagio Group conference), 6 December 1963; Fritz Machlups notes on why economists disagree about the problems and solutions to the monetary crisis; Proposed Discussion Outline December 1963; Proposals for International Monetary Reform (1964); Summary Statement: First Bellagio Conference, Peter Kenen 22 January 1964 Statement by Professor Heilperin, Geneva, 24 January 1964; My Views at the End of the Bellagio Conference, Burton Malkiel; My Views at the End of the Bellagio Conference, Fritz Machlup; Triffins Comments on Questionnaire Answers; Statement by Egon Sohmen, Bellagio Conference, 1822 January; Statement for the Bellagio Conference, Robert Mundell, 31 January 1964;

Full contents can be found at

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