Abstract

DAVIDSON, Paul. ¿QUÉ ES ERRÓNEO EN EL CONSENSO DE WASHINGTON Y QUÉ DEBEMOS HACER?. Cuad. Econ. [online]. 2003, vol.22, n.39, pp.169-194. ISSN 0121-4772.

Paul Davidson’s essay criticises the basic postulates and blanket adoption of the Washington Consensus’ ten reforms, whose application has been disastrous for developing countries during the last few years. It shows that the postulates regarding free trade and some of the recommendations deriving from them (fiscal discipline, liberalising interest rates, competitive exchange rate, free direct foreign investment and the search for international competitiveness by reducing wages) do not correspond to the real world and are misleading and prejudicial. After revising the consequences of a blanket application of these measures, he presents a proposal for reforming the international payment system based on that which Keynes presented at Breton Woods. The essay finishes by making some critical comments about proposals put forward by James Tobin, George Soros and Milton Friedman.

Keywords : Washington Consensus; monetary systems; fiscal policy.