The chapter examines the dynamics of the successful growth path of the Polish economy in the twenty-first century, but also the clashes over foreign bank ownership, over exchange-rate policy (including the question of Poland joining the euro), and above all over the politics of the central bank. Inflation remained a neuralgic point. Discussions about inflation levels remained highly controversial: in the early 2010s, there was criticism about too low inflation; after 2020, and especially after 2022 and the Russian attack on Ukraine, criticism of high inflation, and of the politicization of the central bank. Money remained linked with political security.

Examines the financial and economic challenges facing the new Polish state, the Second Republic, including the integration of different institutional and monetary systems and the need for monetary stabilization. The postwar Polish inflation, which morphed into galloping inflation and then hyperinflation, had its origins in fiscal deficits directly monetized by the central bank. But there was a substantial difference of opinion on the best approach to monetary stabilization: either fiscal stabilization, or assistance from the outside through a foreign loan. Zygmunt Karpiński and Feliks Młynarski, the two men who decisively shaped the intellectual orientation of the new central bank, the Bank Polski (BP), emphasized the importance of a balanced budget as a prerequisite for monetary stabilization. They also conceived of introducing a new stable currency to run concurrently with the old depreciating currency: the new currency, the złoty, had in its name an explicit reference to gold.

The Introduction lays out the dilemma of modern central banks in terms of the “Odysseus contract” under which central bankers guide the ship of state safely through monetary turbulence, with wax stuffed in their ears so that they ignore calls for generosity and complaints about meanness, while the political master – Odysseus, the government, the people – agrees to be bound. Poland in the 1920s and again in the 1990s tried to establish such a central bank, in the wake of the reestablishment of the state. Important theorists conceptualized the central bank as part of an underground, alternative state, during moments of foreign rule: the nineteenth century division of Poland, the German occupation of 1939–45, and communist rule. Security considerations played a prominent role, and dictated the national importance of building up gold reserves, especially at moments of geopolitical strain.

This final chapter of Part III focuses on applications of spontaneous symmetry breaking in cosmology. It introduces the phase transitions believed to occur in the early universe and their possible relations to theories of cosmological inflation. Topological defects in the structure of the universe as a consequence of phase transitions in the early epochs are classified and analysed.

Chapter 11 compares and contrasts Indonesia, under Sukarno, and Burma's military governments. The stagnant economies of both are assessed and the absence of recourse to the price mechanism highlighted.

This chapter analyses socialist financial systems and their common features of mono-banks, fiscal deficits and printing money to finance these. The chapter also looks at the plural society.

Americans have struggled to reconcile capitalism and war. Over three centuries of history, they have grappled with fundamental tensions between capitalism and security. The combination of war and capitalism often created disruptions and deep inequities that ordinary Americans and their leaders decided must be moderated for the sake of a more successful and politically sustainable war effort. For much of the nation’s history, capitalism was understood to be an insufficient provider of security; the U.S. military economy was semi-socialized, in both peacetime and wartime. But as the record of recent decades has highlighted, Americans have not experienced an ever-higher ratcheting of regulation and socialism, with each new war, over the long run. Rather, the historical record suggests that many postwar demobilizations served to reinforce capitalism. For the nation’s entire history, struggles over the economics of war and national security have been important parts of U.S. political development. This will continue to be the case in the current century, as Americans battle over economic policy and fight new wars, domestically and abroad.

Central bank mandates have evolved with time beyond price stability and economic growth objectives to include financial stability, financial inclusion, and, more recently, climate change in some jurisdictions. This chapter analyses the potential role of central banks in dealing with increasingly significant climate risk. Existing literature suggests that physical and transition risks from climate change are key risks to macroeconomic and financial stability. The chapter argues that central banks should, therefore, at a minimum, incorporate climate risk in their macroeconomic and financial stability risk assessments to determine appropriate policy and regulatory tools for addressing them within the boundaries of existing mandates and underpinned by a transparent framework of decision-making and accountability. Central banks should avoid mission creep by remaining focused on achieving clear statutory objectives, while at the same time avoiding possible legal and credibility risks from doing nothing or too little, too late. The chapter further argues that central banks in emerging and developing economies face peculiar challenges in assessing the dynamics of climate risk, estimating potential impacts, and calibrating tools to address potential impacts on price or financial stability. It concludes by recognising progress at the international level and calls for additional guidance, particularly for central banks in emerging and developing economies, to help design proportional and effective central bank policy and regulatory measures to help contain significant climate risks they face.

Inflation is introduced as a possible resolution of the flatness and horizon puzzles. Scalar field dynamics are discussed, and both exact constant-equation-of-state solutions and slow-roll inflationary solutions are presented. This chapter also includes a description of quadratic, Starobinsky, and Higgs inflation, before discussing the end of inflation and reheating. A rather drastically different alternative, ekpyrosis, is also presented. The associated cyclic model of the universe is introduced, and the difficulties in describing cosmic bounces from a contracting to an expanding phase are analyzed.

Describes the major research project on stagflation led by Meade from 1978 to 1987 and his concurrent activities, especially his involvement with the new Social Democratic Party.

Climate change presents significant risks to economic and financial stability, compelling central banks to address its impacts on inflation and output. As climate-induced disruptions – such as extreme weather events and carbon taxes – affect price stability, central banks must adapt their monetary policies to mitigate these risks. Climate change can trigger inflationary pressures, alter labor productivity, and impact capital stocks, influencing the natural interest rate and overall supply. The ecological transition also poses challenges, potentially causing stagflationary episodes that complicate central banks’ dual mandates of price and output stability. Consequently, central banks are increasingly integrating climate risks into their frameworks, with the aim of maintaining their inflation-targeting objectives while supporting the green transition. Effective policy responses require a deep understanding of climate-related risks, enabling central banks to adjust their monetary tools and align their operations with sustainability goals. Addressing these challenges becomes essential to strengthening economic resilience in the face of climate change.