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By Gunnar Myrdal

Opposed to The circulation: serious Essays On Economics, via Myrdal, Gunnar

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And this has happened within a space of time that is short, historically speaking. Perhaps for this reason we should not feel disheartened about the prospect of these international relations gradually developing in line with the valuations which have given us the still rapidly developing domestic welfare state. " The theme was further developed in a later book focused on the policy conclusions of my earlier studies of the development problems in underdeveloped countries. 3 It was there followed out systematically in regard to specific main issues, charging the economic literature on these problems with opportunistic biases on a gross scale.

In Germany, the Brandt government is firmly committed to overcoming the relative backwardness of that country's welfare position up till now. Their greatest difficulty is also the inflationary trend, which the government must seek to overcome in order to take radical steps toward perfecting the welfare state. But the movement will go on. To summarize, as far as the developed countries are concerned, I see the welfare state as more than an achieved situation. Dynamically, it has become an almost immutable trend.

Stagflation" • § 5 25 Internationally, this has led to a situation in which everybody now agrees that the realignment of exchange rates and the widening of the band of flexibility reached in December 1971 by the agreement between the "Group of Ten" highly developed countries is nothing more than a temporary stopgap solution, and one that has already been broken by new sterling depreciations. A more permanent arrangement must amount to a consensus between all the Western countries and Japan on a great number of things: not only on exchange rates and rules for their alteration, but also on an agreed code for responsible internal financial and economic policies, particularly in regard to the movement of interest rates.

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