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Economic Commentary

Money, Fiscal Discipline, and Growth

History will regard the last quarter of the twentieth century as a time when the world reawakened to one of Adam Smith’s most important observations— that the specialization and trade fostered by market economies are ultimately the source of the wealth of nations. At no time in history have markets spread so rapidly, and with such promising prospects, as in the last 15 years. Europe’s move to a single market for capital, goods, and labor is part of a worldwide trend toward greater reliance on unfettered markets for the allocation of productive resources.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Jordan, Jerry L. 1997. “Money, Fiscal Discipline, and Growth.” Federal Reserve Bank of Cleveland, Economic Commentary 9/1/1997.