PO232 Lecture Notes - Lecture 6: Triffin Dilemma, Foreign Direct Investment, Capital Control
Document Summary
Trying to create low-tariff system organized in multilateral way: overall system that relevant states would be part of, would govern trade between rich countries of the north (n. america, w. europe, japan) Effort to create ito fails (late "40s: us congress ratified it, they were responsible as leaders for intl org but refuse to join themselves. Gatt rounds: 1st - us agree to cut tariffs by 33%, other countries barely relaxed their trade barriers. Us openness, tolerance asymmetry: us much more open to imports from other countries, other countries weren"t as open to us exports, allies needed time to reconstruct their economies - us understood and was happy to accept imports. Europe and free trade: possible solution to 100 year old rivalries. System still based on gold, but wasn"t gold standard. = . 00 1 oz gold; others peg to us with mostly stable exchange rates.
