Economic thinking among the major industrial countries was very similar, and received wisdom was, for the most part, imported from the United States. Although Canada’s experience had, in effect, been providing the rest of the world with an example of how an open economy operates in the presence of near-perfect capital mobility, it went largely unnoticed.
Closed-economy concepts continued to dominate most national policy discussions. While Mundell’s results were slowly filtering through the academic community, they had not yet reached the ranks of practising economists. Little recognition was given to the effects that market liberalization and different exchange rate arrangements might have on policy outcomes.