ECO342Y1 Chapter Notes -Fiscal Policy, International Political Economy, Central Powers
Document Summary
Feistein, temin & toniolo, the world economy between the wars (2008) ch. 2* Rapid shift of resources from consumption to arms production; reorganization of economic life. General conscription (changed labor force completely in the country side) Demise of several empire (kaiser, austro-hungary, the ottoman) Food scarcity (farmers not willing to sell because there isn"t a market) Displacement of the agricultural sector in the belligerent countries led to the lifting of import duties in order to gain access to the cheapest overseas suppliers. (e. g. grain & meat in the u. s. , Financial cooperation was undertaken by the entente powers in the form of inter-allied loans. Actually, social impact is the most severe; Great shift in consumption & production pattern; Excess capacity once the war is over; Competition: countries that did not suffer too much from the war (u. s. , japan) invaded the market response: larger business units (collusion, cartels, monopoly) A more rigid economic environment: everything is centrally negotiated.
