WWI adjustment issues

WWI adjustment issues - 1/12 class WWI as a turning point o...

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1/12 class WWI as a turning point o Karl Polanyi’s thesis on 19 th century civilization Self-regulating market Laissez faire state International gold standard system Balance of power In the Great Transformation (1944) Karl Polanyi argued that 19 th century civilization had been rooted in the four institutions shown in the table above. The core institution was the self-regulating market. Its functioning required the laissez faire state. The extension of this post-mercantilist world of free trade at the international level required the unimpeded operation of the gold standard monetary system. This century (Napoleonic wars to WWI) was relatively peaceful because the major countries were able to adjust their systems of alliances so that a balance of power prevented major wars. o Collapse of the system The new industrial technologies of the 19 th century set in motion a chain of consequences. Large scale production and more intense competition saw competitive markets become more concentrated. As market structures evolved toward monopoly,
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This note was uploaded on 05/22/2011 for the course ECON 488 taught by Professor Brunton during the Spring '11 term at James Madison University.

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WWI adjustment issues - 1/12 class WWI as a turning point o...

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