Farm Wars: The Political Economy of Agriculture and the by Robert Wolfe (auth.)
By Robert Wolfe (auth.)
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Individuals act and join with others in a variety of ways simultaneously; 'An all too narrow conception of interest,' therefore, 18 Farm Wars 'must in effect lead to a warped vision of social and political history, and no purely monetary definition of interests can leave room for that vital need for social protection' (p. 154) In Polanyi's political economy, the 'challenge' is to society as a whole; only the 'response' comes through groups, sections and classes. ' The puzzle, he agrees, is 'not why those who grew corn attempted to sell it dear, but why they regularly succeeded in persuading those who bought the corn to help raise its price' (p.
Market liberalism remained important, but it was no longer a goal independent of society. In the postwar international order, multilateralism was made compatible with domestic imperatives: states are allowed to do what they must at home, as long as their partners are not expected to bear the cost. This compromise requires cooperation if the unwanted effects of borders are to be 24 Farm Wars minimized while the values sought are maximized. The world market, like the domestic market, must be organized if it is to be stable.
Hegemonic stability is a structural theory. It seeks to explain the structure of the system not the policy settings of governments. The evidence will not conform to the theory (Eichengreen, 1989). Far from provoking monetary closure, the end of fixed exchange rates unleashed an uninterrupted and enormous liberalization of financial markets. In 1972, daily foreign exchange movements of $4 billion were a marvel. In the mid-1990s, it is popular wisdom that such transactions exceed $1 trillion every day.