NOV 4 - 1. Ending Bretton Woods a. 71 the agreement...

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1. Ending Bretton Woods a. 71 the agreement exploded b. The Floating Dollar and the Currency Crash b.i. Exporting capital in essence b.ii. Began to show strains – countries started to withdraw from Bretton Woods because dollar was not holding up b.iii. Nixon unpegged the US dollar, other currencies began to float as well b.iv. Immediate effect, massive depreciation of most currencies before the oil problems b.v. Monetary policy was stable place by which you could make agreements, allows for creation of welfare states b.vi. Frees up new options for running fiscal programs b.vii. OPEC feels a squeeze as well because currency is floating c. Nixon Shock d. End of Monetary Policies e. New roles for IMF and World Bank 2. Oil Crisis and the 1970’s Slump a. OPEC and the Six-Day War a.i. In 1973, bipolar world view is falling apart a.ii. Arab Israeli conflicts, raised prices for oil to countries through cutting productions a.ii.1. Political weapon for support of Israel a.iii. Europe now at mercy of previous colonies b. Happens twice 73 and 79 b.i. Because of events in Iran this happened, deep flaws in system exposed 3. Prices and recession a. Food and such begins to be regulated b. Shock to Europe, America, and Japan c. Subsidization d. Japan has infrastructure that is better than most other countries at the time. e.
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This document was uploaded on 10/28/2011 for the course HIST 140 at UNC.

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NOV 4 - 1. Ending Bretton Woods a. 71 the agreement...

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