POLI 445 Lecture Notes - Lecture 16: Currency Crisis, Speculative Attack, Waves
2 Jan 2020
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Document Summary
In economically advanced countries, capital controls removed by 1980"s. In the bretton woods era, industrialized countries start shedding their capital controls; and in 1980"s industrialized countries much or less liberalized their economy, free transfer of capital. Fukuyama : the end of history : francis fukuyama"s essay and book, he says that about end of the cold war is that international politics, political sort of debates going on; everything was shaped by u. s and ussr. In economy; it is determined by government intervention to economy in soviet part; democratic capitalist version is the other way. This 2 headed system failed: the fixed exchange rates, bretton woods did not work. Import substitution industrialization in some countries who cannot pay their debt etc: different approach from countries like south korea was to export oriented industrialization; they did better than isi states. Because they have exports they earned hard currencies and survived from debt crisis sooner than other countries.
