National Prosperity is No Mystery

Abstract

Throughout the twentieth century, many countries have recovered suddenly from rapid inflation and economic stagnation, and have then begun to enjoy years of noninflationary prosperity. The results have often been called “economic miracles”—the Poincaré miracle in France, the Erhard miracle in postwar Germany, the Mauritius miracle, the Bolivian miracle, and so on. But economic miracles are no mystery. They all had two or three features in common.