Political Science 2231E Lecture Notes - Lecture 9: Capital Flight, Hard Currency, Quantitative Easing
27 Dec 2018
School
Department
Course
Professor
Document Summary
Deregulation lack of oversight into how banks work and who they audited. Banks could bet on whether things would fail such as mortgages. Low interest rates jobs & houses for all, encourages spending. Subprime loans bad & good credit mix. Us = quantitative easing vs. rest = austerity = unhappy. No criminalization of financial malpractice (all the shit that happened was legal) Rich - no tax increase -why: capital flight. Cuts to services for middle and lower classes. Summary: gill and harmes say rich barely affected while cuts were made to middle/low class to deal w recession. Gdp: value of goods/services produced in a country in a given year. Gnp: value of goods & services produced by and income of citizens/nationals of a country in a given year fdi, etc. Non convertible currency: maybe not be able to convert for another state"s currency. Hard currency: convertible between different states" currencies -> encourages free trade.
