POL101Y1 Lecture : Feb 28 Seeing Inequality
Document Summary
Counting inequality seeing inequality through data: aggregate. /day vs. /dap: global poverty line /day. If the poverty line is increased to /day, more than 600 million people in china would be considered to be living in poverty. Global inequality: rich countries getting richer, poor getting poorer. Bretton woods imf, fixed exchange rate system, american backed system ( global currency) Gatt agreement by all countries to gradually reduce tariffs. Countries in south east asia, latin america, and africa were growing slowly. Opec price spikes: oil producing countries formed a cartel and increased prices, energy became more expensive = stunted growth of poor countries. Breakdown of bretton woods: too much pressure on the us us began to back out, foreign exchange rates began to fluctuate. Globalization: rapid increase in flow of cash. 1983: amount of money in government was 3x greater than in world. 1998: central banks controlled only of their money = instability.
