PO232 Lecture Notes - Lecture 8: Comparative Advantage, Import Substitution Industrialization, Marshall Plan
Document Summary
East asia were designed around rebuilding these economies part of ideas were development and reconstruction. But, another part of these policies was to provide these countries speci cally with dollars in order to restart their currency relationships with each other. This led to some american policies that seem extremely foreign/strange. Idea was for these countries to buy stuff from other countries, not from the u. s. to facilitate the reconstruction of trade relationships (due to the short supply of the usd) The marshall plan post-war scheme that"s aimed at europe reconstruction and also keeping usd owing back into europe. International goals of the bw period: gov"t keen to keep unemployment down and stimulate growth: counter- cyclical spending. Ccs starts from the assumption that economies go through cycles of boom and bust; the idea of this is to smooth out these peaks and troughs.
