2.12 The Bretton Woods System & Structural Adjustment Programs

Question 1

Name the Bretton Woods Meetings and emergent institutions

Answer 1

gathering in 1944. establishes all currencies linked to the dollar and the dollar linked to gold. collapses in 1971. also establishes IMF and world bank. later the WTO is establishes

Question 2

Explain the historical consequences and legacies of Bretton Woods.

Answer 2

Establishment of International Institutions, Fixed Exchange Rate System, establishes U.S. Economic Dominance.

Question 3

hayek

Answer 3

when governments interfere in the economy it results in people acting in ways that are not sustainable which leads to boom bust economy

Question 4

Recognise the relationship between the Structural Adjustment Programs and Corporate Ideology.

Question 5

Keynes

Answer 5

General theory of employment interest and money
Challenges classical theories that economies will eventually correct themselves over time
In a recession, the government should spend money to get money flowing in the economy (stimulus)
E.g. infrastructure projects or other forms of fiscal stimulus

Question 6

Corporate Ideology,

Question 7

Structural Adjustment Programs

Question 8

describe the corporation as an externalising machine

Question 9

describe corporate ideology and the Washington consensus

Question 10

role of the IMF

Answer 10

created to promote international monetary cooperation, exchange rate stability, and balanced trade.
provides financial assistance to member countries, offering loans and policy advice to stabilize their economies.
also monitors global economic and financial developments and provides policy recommendations.

Question 11

Role of the world bank

Answer 11

The World Bank was established to provide financial and technical assistance for post-war reconstruction
Over time shifted its focus to funding development projects in poorer countries, primarily in the form of low-interest loans

Question 12

Role of the WTO

Answer 12

Upholds the rules of international trade

Question 13

Compare and Contrast Keynes’ and Hayek’s views (stimulus vs austerity)

Answer 13

Keynes advocated for active government intervention during recessions, including increased spending and monetary easing, while Hayek believed that market forces would correct themselves.
Keynesian economics is associated with demand-side policies that focus on stimulating consumer and business spending, while Hayek’s views are aligned with supply-side economics, emphasizing the importance of removing obstacles to market efficiency.
Keynes’s approach is generally considered more interventionist, with an emphasis on the short term, while Hayek’s views promote limited government intervention and prioritize the long-term health of the economy.