INTA 1110 Lecture Notes - Real Estate Bubble, Comparative Advantage, Stagflation
30 Nov 2012
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Document Summary
Products are made through a global supply chain. Developed after wwii: influence by experience through great depression, int"l institutions. Us dollar pegged to a fixed price of gold. Provides assistance to countries faced with short term liquidity crises. Traditionally, the head of the imf is not from us. Mandate has shifted to center on development. Traditionally helmed by an individual from the us. Originally, an int"l trade organization: us senate objections blocked any such arrangements. Gatt was formed in 1947: purpose: lower tariff rates, multilateral trade deals, based in geneva. Increasing protectionism due to shifting american priorities. Stagflation in the us: wage and price inflation, high unemployment, decrease for demand of us products. The nixon shocks: got rid of the gold standard, imposed a 10% tariff on all imports. Us would no longer convert dollars to gold. Effect: decade of protectionist policies among developed countries. The economy is another arena of power politics, which it is subordinate to.
