Economics 1021A/B Study Guide - Quiz Guide: Bretton Woods System, Capital Control, Deglobalization

• School: Western University
• Department: Economics
• Course: Economics 1021A/B
• Professor: bruce hammond

Document Summary

Fixed (but adjustable) exchange rate, keynesian policies (national macroeconomic autonomy), capital controls - immobile capital (capital controls to stop currency arbitrage), small current account positions, dependent central banks. Designed to solve de-globalization problems of the 1930s (time of great depression) Absence of international policy coordination: trade wars, collapse of gold standard, exchange controls bretton woods system encouraged international trade. Strong and directed state but not a totalitarian regime societal units regulated rather than controlled by state. Role of state = eliminate conflict with collective organisations by bringing interest groups into the same system. Centralised wage bargaining promoting wage restraint virtuous cycle of workers agreeing to lower wages and firms increase investment, increased output paid back to workers/firms: social capability. Ability of a society to adopt/adapt best practice for technologies (differences in institutions and policy) Reflected by characteristics of societ such as: education of labor force, distribution of income, property rights and networks and social capital: technological congruency.