POLB90H3 Lecture Notes - International Financial Institutions, Capital Outflow, Debt Relief
27 Feb 2014
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Document Summary
Involve in the algerian struggle for independence from france: black psychiatrist, from martinique, wrote, the wretched of the earth, black skin, white masks. The world trade organization (wto: all of these are linked, reinforce each other. What happened: change in the conventional wisdom about what constitutes good economic policy, john maynard keynes. For capitalism to function well there had to be state intervention. Slums and booms in capitalism, when there is a boom government should save money and when there is a slow-down, they should spend to stimulate employment and spending: 1970s: the new orthodoxy. Human beings operate in their own self-interest. Prices of things are not to be interfered with. Basic equilibrium model, state interference produces a misallocation, and a whole host of economic problems. Economic events: rise of petroleum prices, many global south countries were affected, decline in us competitiveness, finding another way of running economy, the international debt crisis, crucial to pushing these forward.
