Japan refused to keep reserves of dollars outright, and simply demanded that Americans redeem every piece of gold that the paper stood for.
It resulted in a massive outflow of gold on the US’s part, and greatly hurt American inflationary schemes back then. It would have been a prompt correction of American fiat currency policy on its own, and it somehow seems like the Austrian School was probably ensuring that this happened.
Seems like common self interest was advising them.
I don’t know; do we have a conspiratorial wing?
Haha.
What I mean is - Friedmanites and Keynesians were advocating inflationist monetary policies with fluctuating exchange rates - but Japan was one of the countries in the 1950s which refused to have reserves in anything but actual gold, and had their dollars redeemed.
It was the same case in West Germany and Switzerland, it is likely that their governments had economic advisors who came from the Austrian School, since they are both in Germanic Europe, and I just wonder if the Austrian’s School advice may have been taken in recommending governments to keep gold and not dollars.
It isn’t that Austrian ideas made a move there. It’s that Keynesian ideas had not yet. Japan was a monarchy with a state press until the end of WW2. Keynesianomics serves as a sort of publicity stunt in democracies.
There’s something of a “Japanese school of economics” which in some ways is shockingly similar to the Austrian school. There’s been another thread about this months ago, and I couldn’t tell you where to look. Maybe someone else will chime in?