POL208Y1 Study Guide - Final Guide: European Bank For Reconstruction And Development, Bretton Woods System, Stephen D. Krasner
Document Summary
International political economy discusses the fact that the political actions of states clearly. Furthermore, political decision making is one made with economic. Repercussions in mind, or what is economically viable. Bretton woods system: estbalished the stable liberal trade system affter ww11 and the. After ww11 european states were in need of financial assistance. Including britain who prior to ww11 was seen as the foremost economic hegemon. Standard (pre 1914) provided an automatic adjustment mechanism for international payments. Whereby countries involved in trade would pegg their own currency to the gold standard. Gold standard helped to stabilize international and domestic economies although after ww1. States lost confidence in the system and resulted to protectionist measure, eventually. Abandoning the gold standard, during this time and soon after britian could not help, and the. Us refused to help resulting in the great depression. The significance of the bretton woods system lies in the idea that insitutions can.
