History 1807 Lecture Notes - Lecture 29: Deindustrialization, 1973 Oil Crisis, Bretton Woods System
21 Apr 2016
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Document Summary
Bretton woods system put in place in the immediate aftermath of post-war years to create order. Placed american dollar @ central of financial and monetary system. Put @ gold standard and the standard currency for rest of world reserve. Infrastructure was created imf created to govern and control. Worked for around 20 years after it was put into place. By 1960s, the order begins to crumb for many reasons. Instability and run of american dollar americans spending like crazy but not making enough $ to maintain standard of living. Collapse of american dollar seemingly imminent b/c of vietnam war. Transforms world economy to one that"s more based on finance and speculation (currency training) Opec oil crisis whereby p of oil starts to skyrocket. Collapse of manufacturing system of usa leading to high unemployment and stagnant wage level. Emergence of stagflation high unemployment w/ runaway inflation. Cause of stagflation was mass dislocation and unemployment.
