SOSC 1000 Lecture Notes - Lecture 12: Floating Exchange Rate, Washington Consensus, Post-Fordism
17 Jul 2014
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Document Summary
American consumers lined up at the gas stations. In early 1970 we see the development of the concept of stagflation. The keynes model doesnt have a explanation for this: as a result, organized labour looks to defend itself against inflation. If there is going to be inflation unions say it was not affect our people. Organized labour becomes increasingly milagrant: the crisis is on the political agenda by 1971, the nicson shocks begining in 1971. The first thing the president of the usa did was to slape 10% tarrifs on everything entering the united states market place. Overnight became 10% more expensive so they would buy stuff already from the states not what was imported. Another component of nicon short was the decision by the government was to introduce the floating exchange rate, the value of americna dollar be determined by supply and demand.
