Class Notes (839,094)
Canada (511,185)
DEVS 230 (31)
Lecture 3

Monday September 24 Week 3

2 Pages

Global Development Studies
Course Code
DEVS 230
Marc Epprecht

This preview shows 80% of the first page. Sign up to view the full 2 pages of the document.
Monday September 24, Week 3 The 1982 Debt Crisis Key Concepts  Keynesianism (managed capitalism)  Neoclassical Economics (Free Market, Monetarism, Individualism)  Regime, Structural Power, Relational Power Potential Exam Question  Using an IPE lens, discuss to what extent the demise of the BW REGIME led to the 1982 Debt Crisis The 1982 Debt Crisis  Remember: To think through how ideas, institutions and materiality shift and change during the 1970s to early 1980s. Fixed exchanged rate is removed after 1971, so the IMF no longer has to oversee it. Demise of the BWR  ISI and Fordism forms of production in crisis  Financial markets turn to speculation rather than investing in manufacturing  Balance of payments problems (trade deficits), difficult to rectify without devaluation (fixed exchange rate = straight jacket)  Debt-ridden countries turn to private banks, not IMF  Two oil crises in 1970s = increased levels of inflation  Off-shore banks awash with excess dollars from oil exporting countries begin to facilitate over lending (speculation) to high risk debtor countries Monetarism focuses on inflation not unemployment; unemployment is either voluntary or due to labour market regimes (union laws). Inflation harms financial markets more than manufacturing and general population. Crisis and Change in the US Production (Fordism enters into crisis) Security (cold war eases) Knowledge (Keynesianism under attack by neoclassical ideas) Finance (increase in speculative activity) Speculation When financial actors (banks, funds, etc) conduct a financial transaction (trade in asset) that has significant risk of losing most or all of the initial outlay, in exception of a substantial gain.
More Less
Unlock Document

Only 80% of the first page are available for preview. Some parts have been intentionally blurred.

Unlock Document
You're Reading a Preview

Unlock to view full version

Unlock Document

Log In


Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.