POLI 445 Lecture Notes - Lecture 11: General Agreement On Tariffs And Trade, Deflate, Campaign Finance In The United States
30 Jan 2018
School
Department
Course
Professor
Document Summary
From the "promise of flexibility" to the "fear of floating" Why did everyone think the shift to floating exchange rates was a good move: poli(cid:272)(cid:455)(cid:373)akers . "leaning against the wind" - trying to use constant intervention to maintain the fixed price on the market. Just accept that the market will have inconsistencies: also, a new model around - monetarism. Monetarism: new approach to monetary policy (concentrating on the domestic side), and has a spillover effect on exchange rates. Late 1960s/early 1970s - monetarism on the sidelines for now, will become mainstream around. 80s: but for now it is a critique of keynesianism, why did it take hold in the 70s, domestic side of things. Size of government"s role increased a lot in the economic sphere: keynesianism was difficult to pull off - it required restraint, but in the us there was no stimulus and politically it was hard to stop.
