POLSCI 3B03 Lecture Notes - Lecture 3: United States Dollar, Neoliberalism, Good Governance
30 Nov 2013
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Document Summary
Three events led to the developmental state: the influx of fdi, the end of the cold war, globalization (including neoliberalism) Fdi: importance of the plaza record of 1985 when central bankers of the major capitalist economies got together at the plaza hotel in tokyo and arranged for the doubling of the yen. The yen was = 240 yen, after the record the bankers manipulated the value of the yen and it fell to = 120 yen. The point was that when you are buying with an american dollar and you want to buy a japanese product, once the value of the yen appreciated then it would cost you more. This is what america wanted as they wanted to reduce the flood of cheap japanese imports into the us. By making the yen stronger, it cost more to buy japanese goods, but the. They went to the us and ending up buying.
