IDST 1000Y Lecture Notes - Lecture 5: Structural Adjustment, Wage, International Development Association
15 Dec 2016
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Document Summary
Structural adjustment and development dilemmas (190-1995) 08/10/2014. Economic order is based on comparative advantage. This was first introduced by david ricardo in 1817. He believed it was better if countries/people specialized in the thing they were best at doing. This would make things more efficient and cheaper. All countries tied their currency to the us$ In the 50s and 60s there was a global economic regime. The system unravelled when the us joined the vietnam war. This caused inflationary pressures around the world. Monetarism is the idea that inflation occurs when there is too much money in the economy. This money must be removed in order to fix the economy. There was a reinsertion of laissez faire. This is the idea that people should be left to do what they want and follow their own interests. This was made popular by milton freidman. It was believed that there would be better outcomes for everyone.
