CLASSICS 1M03 Lecture Notes - Lecture 15: Purchasing Power Parity, De Facto Currency, Hegemony
Document Summary
According to the theory: one common feature of both periods of time is that the international system was dominated by one state that had an overwhelming advantage in power over all other states. Both eras have states that are hegemonic. Thus we see high levels of international openness during the period of. However, once britain"s preponderance began to decline (relatively speaking) the international system seized up and descended into war. Extending this correlation to the present, high levels of international openness appear to correspond with the american international dominance that began in the mid-20th century. With the rise of the american hegemon the international order stabilized, and a trade and rule-based international order ( globalization ) began again. The extent of us power in 4 different areas (this schema is derived from michael mann): There are several aspects of the american economy that appear to give it an unparalleled supremacy in the international system.
