POLI 445 Lecture Notes - Lecture 10: Robert Keohane, Hegemony, Old Ideas
30 Jan 2018
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Midterm notes: apply as many theories as you can when answering essay questions. What caused the collapse of bretton woods: most were identified by mundell and fleming. The dollar as the key currency: us dollar used widely, created problems with how the rules worked and how things could be managed. In the early 1960s, the conversion policy problem is named the triffin paradox. Bp deficit at times/convincing its allies to discriminate against it in trade. If you keep doing this, it undercuts demand for dollars: creates dollar glut, undermines confidence, the policies that you implement to provide liquidity to the intl system will also undercut confidence in the money. It"s not a sustainable thing over time: dollar cannot sustain its roll under bretton woods. After kennedy"s assassination, two big things happen that prevent this: us engages in the vietnam war, lots of dollars going to war effort. Lindon johnson - wanted to be like fdr.
