The Failure of Fiscal Contraction

The simple thing in the world’s economic futureis not as simple as part of Immanuel Wallerstein and say that capitalism will end in a number of years with Thomas Friedman proclaimed that where there is no war MacDonald. The story is long since the war. He had to design economic institutions and politics of a bipolar world. Four conferences were necessary for the latter: Tehran (December 1943), Yalta (February 1945), Potsdam (July 1945), London (September-October 1945). For the former the key is in Bretton Woods (1944), with assistance from 45 countries and where it is decided that the dollar is the world’s reserve currency and where creating two agencies, the International Bank for Reconstruction and Development (IBRD), which then becomes the World Bank (1946) and the International Monetary Fund (IMF.) At the political level there is the United Nations Organization resulting from the Dumbarton Oaks Conference (September-October 1944) and San Francisco (April-June 1945). Since 1948, the trading system came to be governed by the General Agreement on Tariffs and Trade (GATT).

The World Trade Organization was born on January 1, 1995, following a round of negotiations was known as the Uruguay Round, completed by the long years from 1986-1994. Is this the international economic structure of the world we have known for more than six decades. One thing is a world of international relations between nation-states and is a very different economic regulation for a globalized world. Nobel Prize economist Joseph Stiglitz has pointed out some of the failed policies such as fiscal and monetary contraction.

| November 9th, 2010 | Posted in General |

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