SUST 2001 Lecture Notes - Lecture 10: International Political Economy, Chicago Boys, Neoliberalism
10 Oct 2018
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Document Summary
Neoliberals claim this was because there was too much government interference in the market. Us, uk and other wealthy countries were the biggest contributers. The uk (thatcher) and the us (reagan) took up neoliberalism and then used their power within the imf/wb to use neoliberal solutions. The developing world seemed to do well off the bat. There is always a shock when you deregulate. Interest rates jump up from 8% - 16% After a bit, the market stabilizes into a strong us economy in the 1980s. The higher the controls the slower money can enter a national economy. Without capital controls a developing economy can have money invested very quickly creating an economic boost. When the markets crashed all the investors pulled the money out quickly, as there were no capital controls. Neoliberals are not afraid of boom bust cycles. In the west, a product of stagflation in the 1970s.
