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History of Political Economy 35:3 (2003) before 1870.3 With few (but important) exceptions the period between 1870 and 1914 was no different. The modern literature on the relationship between ï¬nancial development and economic growth and development is rooted in research conducted during the 1950s and 1960s. Much of this work was applied analysis done by policy advisers employed by international agencies (e.g., the study of the Colombian economy directed by Lauchlin Currie [1950]). Some research by academic economists specializing in problems of economic development touched on ï¬nancial issues (e.g., Gerschenkron 1962), and Raymond Goldsmithâs collections of empirical data on ï¬nancial variables (e.g., 1955, 1969) provided fodder for theorizing. However, the modern academic literature stems largely from the work of such monetary economists as Edward S. Shaw and his student John G. Gurley (e.g., Gurley and Shaw 1955; Shaw 1964). Shaw (1908â1994) was drawn to analyze the monetary problems of developing economies both by his personal approach to monetary theory and, later, by his dissatisfaction with the orthodox Keynesian and monetarist views that dominated the ï¬eld.4 Having failed to obtain acceptance of his ideas as applied to the monetary systems of developed economies, Shaw turned to the analysis of
History of Political Economy – Duke University Press
Published: Sep 1, 2003
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