POLS 1500 Lecture Notes - Lecture 3: Bretton Woods Conference, Bretton Woods System, World Economy
22 Aug 2016
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Document Summary
The global economy (1929-39) deepest and longest-lasting economic downturn in the history of the western industrialized world. In the us, the depression began soon after the stock market crash of october 1929, which sent wall street into a panic and wiped out millions of investors. Over the next several years, consumer spending/investment dropped, causing steep decline in industrial output. Stabilizes exchange rates: linked to us dollar, us dollar pegged to a fixed price of gold. Assistance for countries that face short-term liquidity crises. Tradition: head of imf [look up in slides on blackboard] World bank (international bank for recovery and development) Goal: rebuild europe from the damage of the war. Gatt (general agreement on tariffs and trade) Us senate objections stopped the international trade organization. Goal: lower tariff rates, forum for multilateral trade deals. Us dollar becomes linchpin of global economy: linchpin person/thing vital to an enterprise/organization, or the world in this case.
