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42 Cards in this Set
- Front
- Back
When was the gold standard implemented?
What was it? |
1870-1914
countries fixed price of gold, implicit (understood)exchange rate system |
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When and What is the interwar period?
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1918-1939
economic consequences of the peace, gold standard restored, monetary nationalism |
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The Bretton Woods Conference developed:
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International monetary fund, international bank for reconstruction and development (world bank), World Trade ORganization (GATT)
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Who were the two main men that contributed to the Bretton Woods Institutions?
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John Maynard Keynes & White
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When was the Bretton Woods system implemented? What?
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1945-1971
gold exchange standard, US fixed price of gold, other countries fixed their exchange rates to the dollar |
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Bretton Woods Conference seeks to: Rebuild ______ and ____
_____ ______ is created |
Western Europe and Japan
World Bank is created. |
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Bretton Woods Conference seeks to: Insure _____ _______ ______
______ ________ _________ is created to oversee the Gold Exchange system |
stable exchange rates,
International Monetary Fund |
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Bretton Woods Conference seeks to: Reduce ______ ______ barriers.
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GLOBAL TRADE Barriers
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Reduce Global trade barriers:
_____ ______ _____ is proposed, instead _____ is created, _____ ____ ____ created in 1995 by the Uruaguay Round negotiations (86-94) |
International Trade Organization, GATT, WORLD TRADE ORGANIZATION
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World Bank's identity crisis in the late 1950's?
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Rebuilding of Europe and Pacific is done, turns attention to developing nations & helps poor countries grow and develop
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IMF's identity crisis after 1973?
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Turns to offering financial assistance and advice to countries who run "balance of payments difficulties", seeks to become world's largest credit union while offering help during times of financial crises
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GATT (General Agreement on Tariffs and Trade) gets bigger and bigger and has difficulties over....
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agriculture, intellectual property and services
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World Bank Successes: rebuilt ____ ______ after WWII
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Western Europe
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Assisted _____ _____ after 1950's "Police Action)
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South Korea, rebulit poor agriculture into an industrial advanced country
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The ____ ____ in agriculture has reduced the incidence of famine around the world
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Green Revolution, spreading knowledge and technology around the world to farmers and food producers
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World Bank encouraged economic development through
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industrialization
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Issues with World Bank:
World Bank often stressed _____ _____ policies |
import substitution
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WOrld bank issues: Block ____ with trade barriers and support creation of new domestic industries with _____ ____ subsides
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imports, infant industry
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World bank issues: Result of blocking imports & infant industry subsides...
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inefficient protected domestic industries
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Issues with World bank: _____ on government planned economic growth programs.
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Overemphasis, policy suggestions result in growing government bureaucracy
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Who pays for the bureaucracy?
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government debt, internal political fights over who gets the WOrld Bank money
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Is the World Bank too expensive?
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Why is Africa so poor, so sick, and so unstable despite the billions of world bank money spent there?
Well paid world bank "consultants" |
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IMF Successes: IMF helped to expand ____ ____ through out the 1950s and 60s
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global trade
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IMF non political policy suggestions
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provides discipline over politically driven policies
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IMF encourages movement toward
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market economies with
1. reduction of trade barriers 2. reduction in government budget deficits 3. financial market refor |
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IMF offers
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financial advice along with assistance
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Issues with IMF: Debt crises of the 1980s
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IMF and commercial banks
IMF and large lender countries |
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Issues with IMF: Washington Consensus
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a formula for promoting economic growth in many parts of Latin America and other parts of the world by introducing various market-oriented economic reforms which are designed to make the target economy more like that of First World countries such as the United States
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Issues with IMF: Currency crises of the 1990s
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interest rate defense, supply side policies, asia and Russia
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GATT/WTO problems: Rise of ____ _____
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TRADING BLOCS, free trading agreements, undermines GATT/WTO purpose
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GATT/WTO issues: Concerns of _____ countries are addressed, while _____ nations concerns are ignored
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richer, poorer
intellectual property v. agricultural subsidizes |
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GATT/WTO Problems: failure of the __________ Round
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"Development"
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Meltzer Commission Report of 2000 suggested: IMF
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IMF be limited to only short term lending, countries should pre qualify for IMF assistance, penalty interest rate borrowing from the IMF
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Meltzer Commission Report of 2000: WORLD BANK, grants
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Should provide grants not loans, grant decisions and oversight should be decentralized, more grants only if progress shown
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Meltzer Commission: WOrld Bank, asssitance
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Should limit it's assistance to the poorest of poor countries, less poor countries should get funding from the global financial markets
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Meltzer Commission: World Bank, past
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Outstanding debt forgiveness, admit the past was a mistake
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Main theme of the Meltzer commission
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IMF and WOrld Bank need to use today's modern global financial markets
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Meltzer Commission Report on US influence
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US state department needs to end its influence over the IMF and World Bank
controversial suggestions |
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Bretton Woods System: US became the deficit/surplus country?
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deficit, foreign holdings of dollars
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Bretton Woods: US became the high inflation country
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need to devalue dollar (raise price of gold) or revalue other currencies
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August 15, 1971
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US severed link with gold
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Flexible Exchange rates
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1973-2006
EMS and EURO |