INTA 1110 Chapter Notes - Chapter 7: Monetary Policy, Main Source, Bretton Woods System
30 Nov 2012
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Document Summary
Attention is on issues of wealth and poverty. Economic liberalism claims that the economic system works best when free from political interference. Idea that you can"t separate politics and economics because: bretton woods system failing. Abandoned gold standard: decolonization had created new group of politically weak and economically poor states in the int"l system, end of the cold war. Three theories: mercantilism, economic liberalism, marxism. Economic activity is and should be subordinated to the primary goal of building a strong state. Economic competition is a zero sum game. Two forms of economic rivalry: defensive mercantilism. States look after their national economic interests to ensure national security: aggressive mercantilism. States attempt to exploit the int"l economy through expansionary policies. Economic strength and military-political power are complementary. Economy should be subordinated to the goal of increasing state power. Friedrich list: theory of productive power: the ability to produce is more important than the result of producing.
