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Movie Notes - Notes 11/19/07 After Cold War, US wanted to...

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Notes 11/19/07 After Cold War, US wanted to spread capital free trade ideas to other countries Mexico Shock o US spread ideas of global capital to Mexico o Mexico changed its policies to let investors in – boomed economically o But when interest rates in US started to rise it wasn’t profitable to invest in Mexico; began to back out Collapse in Mexico o US wants to make sure Mexico can pay back investors to make sure it doesn’t lead to global economic collapse Mexico shock led to assumption that investors can invest in unsound countries because they can be bailed out by US or IMF Investors can make money easily by betting on currency exchange Seven richest countries in the world convened to try to get Japan to restart its economy by pegging its yen to the dollar. When the US dollar rose, so did the Asian currencies, and their exports began to cost more. Those countries begin to borrow more money to make up for its increasing deficits. George Soros leads investors to bet against currencies like
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This note was uploaded on 03/19/2008 for the course POLI 150 taught by Professor Mosley during the Fall '08 term at UNC.

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Movie Notes - Notes 11/19/07 After Cold War, US wanted to...

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