ECO342Y1 Lecture Notes - Lecture 2: World War I, Warehouse
Document Summary
Convergence: background to the story, focus: 1870 1914, we talked about last time: theme through the year: economic policy matters, institutions, interwar period, trade liberalization seemed to be good for economic growth and consistently welfare improving, what distinguishes interwar period to postwar period, competition is good. Everything that gets into the way of competition seems to have negative effects on economic growth: as much as possible, reliance on the market as an allocated mechanism seems to have a positive effect on economic growth and welfare, globalization in 1870 1914, this period seems to have been a period of very rapid globalization (growth of international trade, huge movements of people and capital, equal to the post ww2 period), dramatic international interdependence, why people have been looking at this is because there is some belief that their lessons in the past that we can learn to help inform the present.
