Beth Simmons Note

Beth Simmons Note - Beth Simmons Who Adjusts? Chapter 1:...

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Beth Simmons – Who Adjusts? Chapter 1: Introduction Abstract: - view of why governments decided to abide by or defect from the gold standard during the 1920s and 1930s - previous studies of the spread of the Great Depression have emphasized "tit-for-tat" currency and tariff manipulation and a subsequent cycle of destructive competition - Simmons analyzes the influence of domestic politics on national responses to the international economy - confirms that different political regimes choose different economic adjustment strategies Introduction: - we need to understand why individual states choose either to break or to abide by the prevailing norms of international accepted economic policy (specifically, why some states maintained the Gold Standard requirements of currency stability and relatively liberal trade while other chose to adjust to balance of payments deficits by devaluing and erecting barriers to trade) - system of alliances was weak and multi-polar, arguably lessening states’ incentive to invest in cooperation - explanations of the fluctuations of economic policies during the interwar years lack a systemic consideration of the domestic incentives and constraints that states faced in building their external economic policies - government chose to adjust internally by reducing prices and demand The Problem: Explaining International Economic Relations During the Interwar Years: - gold standard set the ‘rules of the game’ for international economic relations - 3 requirements of gold standard: 1. states had to make their balance of payments a higher priority than the condition of their domestic economy 2. states had to maintain reasonably open trade relations in order that gold adjustment standard could take place 3. exceptional finance had to be provided by either the central banks or private banking consortia - liberal economic relations as public goods provided by dominant economic power in the system - hard to determine who the relevant actors are and what it means to cooperate because currency values are not only determined by government but by markets as well The Argument of this Book: - government’s problem was that there is no foolproof way to assure markets that they will resist the temptation to try and engineer stimulation or resist the temptation on go back on a
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Beth Simmons Note - Beth Simmons Who Adjusts? Chapter 1:...

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