HIST-1106EL Study Guide - Quiz Guide: Money Supply, Westernization, Deutsche Mark
13 Nov 2020
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Reynolds chapter 12. 1 the west and stagflation: 1944 bretton woods institutions were established (imf, wb) and fixed exchange rates, 1950s and 60s postwar boom in europe was a matter of catching up with the us . 1960s spread of mncs challenged national control. 1970s and 1980s mncs became a global phenomenon. 1960s internationalization of finance (currency convertibility) even greater erosion of national control. 1950s start of growth in eurocurrency market (foreign exchange markets) speculative capital that was highly mobile and volatile brought potential for instability. 1970s growing power of labor against employers unionizations, strikes: late 1960s dollar and pound were overvalued; deutschemark and yen undervalued, 1970s. Us foreign reserves were decreased and exports had fallen, the opposite for eec. 1971 vietnam war accelerated inflation and balance of payments in the us . 1973 all major currencies were floating exchange rates now depended on supply and demand, private capital was dominating the market now.
