Feliks Młynarski
Feliks Młynarski | |
|---|---|
| Born | November 20, 1884 Poland |
| Died | April 13, 1972 (aged 87) |
| Occupation(s) | Economist, philosopher, banker |
| Known for | Role in Grabski Monetary Reform; presidency of Bank of Issue in Poland; early identification of the Triffin dilemma (Młynarski dilemma) |
Feliks Młynarski (20 November 1884 – 13 April 1972) was a notable Polish economist, philosopher, and banker.
Biography
Feliks was born to Jan Młynarski, an educator, and Honorate née Dziurzyńska. Due to his involvement in pro-independence activities, he was expelled from a gymnasium in Jarosław and subsequently completed his studies in Sanok in 1903.
After graduating from the Jagiellonian University, Młynarski initially aligned himself with the endecja movement but distanced from it before World War I because of its pro-Russian orientation. In 1914, he enlisted in the Polish Legions and later worked in the United States recruiting among the American Polonia community.
Following the war, Młynarski joined the administration of the Second Polish Republic. From 1921 to 1923, he headed the Emigration Office before transferring to the Ministry of Finance, where he became director of the Currency Department in 1924. He played an instrumental role in the Grabski Monetary Reform, which successfully curbed hyperinflation during the interwar period, and co-established the Bank of Poland, briefly serving as its vice-president. Between 1925 and 1927, he was involved in negotiating significant economic treaties between Poland and the United States. After a disagreement with the sanacja government led by Józef Piłsudski, he resigned in 1929. In the 1930s, Młynarski lectured at the Warsaw Trade Academy and provided currency-related counsel to the League of Nations.
During World War II, with authorization from the Polish Government in exile, Młynarski assumed presidency of the German-controlled Bank of Issue in Poland. The occupation currency issued under his tenure became popularly known as "Młynarki."
After 1945, he became affiliated with the Polish Academy of Sciences within the People's Republic of Poland. He continued teaching at the Jagiellonian University until 1948 but was denied a professorship due to controversies stemming from his wartime role, despite receiving underground government endorsement. Additionally, he managed the library at the Cracow University of Economics.
Works
Młynarski produced a wide array of publications covering economics, philosophy, and sociology.
In his 1929 work Gold and Central Banks, he highlighted an inherent vulnerability within gold-based international monetary frameworks: countries issuing reserve currencies accumulate foreign reserves, but as these reserves surpass gold holdings proportionally, fears arise regarding suspension of convertibility. This apprehension can provoke capital flight, deflationary effects, and potential systemic breakdown. After World War II, Belgian economist Robert Triffin identified a comparable problem within the Bretton Woods system, now known as the Triffin dilemma. Given Młynarski’s earlier exposition on this issue, economist Barry Eichengreen has proposed renaming it as the "Młynarski dilemma."
Selected publications
In English:
- 1916 The Future of Warsaw
- 1916 The Problems of the Coming Peace
- 1925 The Genoa Resolutions and the Currency Reform in Poland
- 1926 The International Significance of the Depreciation of the Zloty in 1925
- 1926 World Question of Gold in Connection with England's Return to Parity
- 1929 Gold and Central Banks
- 1931 The Functioning of the Gold Standard
- 1933 Credit and Peace: a Way Out of the Crisis
Additional resources
- Rafał Łętocha, Liberal Nationalism of Feliks Młynarski in: Nationalisms of Various Nations. A Political and Religious Studies Perspective, edited by B. Grotta and O. Grotta, Kraków 2012.
- Rafał Łętocha: A Cohesive Society. Proportionalism and Federalism in Feliks Młynarski's Thought. Nowy Obywatel, April 13, 2012.
- Harold James and Marzenna James: A Banker in the Resistance. Die Zeit, issue 24, June 5, 2025, page 39