Economic and Monetary Union and the Social Divide in France1

Monetary policy since the Second World War has always been a politically and socially sensitive issue in France. It reflected the peculiar strength of the French Communist Party (PCF) in the unions and working class. Postwar governments relied upon monetary inflation, devaluation and administered cr...

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Bibliographic Details
Published in:Contemporary European history 1998-07, Vol.7 (2), p.227-247
Main Author: Moss, Bernard H.
Format: Article
Language:English
Online Access:Get full text
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Summary:Monetary policy since the Second World War has always been a politically and socially sensitive issue in France. It reflected the peculiar strength of the French Communist Party (PCF) in the unions and working class. Postwar governments relied upon monetary inflation, devaluation and administered credit to sustain growth and guarantee social peace. With the exception of the period following General de Gaulle's seizure of power in 1958, there was little choice for governments faced with weak, divided and conflicting unions, a volatile work force, and a united left threatening radical change. Where German governments responded to union challenges and the oil shock of 1974 with deflation, the French expanded the money supply. The divergence of French policy from German after 1968 made European economic and monetary union impossible.
ISSN:0960-7773
1469-2171
DOI:10.1017/S0960777300004884