POLI 445 Lecture Notes - Lecture 9: London Bullion Market, General Agreement On Tariffs And Trade, Bretton Woods Conference

• School: McGill University
• Department: Political Science
• Course: POLI 445
• Professor: Mark Brawley

Document Summary

So, they"re not ready for a fixed er regime with the us by 1950: capital controls lasted beyond 1958. Ibrd is supposed to raise money for reconstruction, but its problem is that it can"t get money on the markets. It could only get it from wall street, but wall street didn"t really like the outcome of. Have free trade in certain areas, but not where us is competitive: wants free trade amongst allies, but have an external tariff against the us, to rebuild and recover from the war, adopt competitive exchange rates vs. dollar. Rules implemented late: when pledged parities were established, others undervalue their currencies vs. International liquidity shortage persists: us adopts unilateral policies promoting dollar outflows in 1950s to solve liquidity shortage, military expenditures, military aid, but more importantly, the us has many military bases in allied countries. Those bases will start to buy things locally.