POL208Y1 Study Guide - Bretton Woods Conference, Hegemonic Stability Theory, Pax Britannica
Document Summary
Butter: each society has different balance of how much guns/butters to hold. It is also a metaphor for ppf (production possibility frontier). Economic warfare: an intense, coercive disturbance of the economy of an adversary aimed at diminishing its power. It could be separated from military warfare (sanctions), or combined (strategic bombing, siege, blockade, etc). Us war during 2002-2009 . 6 trillion for the economic impact, billion for direct war costs) Peace dividend: economic benefit of a decrease in defense spending. If guns harm the economy, peace must lower the demand for guns hence generate more butter . Economic liberalism: predicts that the welfare could be maximized through increased efficiency and growth. Means of efficiency (equilibrium and stability) is based on free market with minimal government intervention. Trade is an effective method as it achieves peace through yielding absolute gains. Considers wealth to be the source of power, and economic competition for primacy.
