CONTEMP Flashcards
An ancient trade network spanning from China to the Middle East and Europe, facilitated the exchange of goods, notably silk.
The Silk Road
Network connecting Manila in the Philippines to Acapulco in Mexico in 1571.
Part of the age of mercantilism, characterized by competition among European countries to boost national income through trade.
It involved high tariffs, restricted trade routes, and subsidies on exports.
Galleon Trade
An international monetary system adopted in 1867, establishing fixed exchange rates based on gold value.
Led to restrictions as countries needed fixed gold reserves to back their currencies.
Abandoned during World War I due to depleted gold reserves and revived during the 1920s before the Great Depression hit.
The Gold Standard
Currency system post-World War II where currencies are not backed by precious metals.
Value is determined by cost relative to other currencies.
Allows governments flexibility in managing economies by adjusting money supply.
Fiat Currency
an economic practice by which governments used their economies to augment state power at the expense of other countries.
mercantilism
Was an economic historian who argued that the US recovery during World War II was facilitated by abandoning the gold standard.
Advocated for flexibility in monetary policies during economic crises.
Barry Eichengreen
A monetary and financial order established in 1944, creating the International Monetary Fund and World Bank
It aimed to stabilize currencies and facilitate international economic cooperation after World War II, using a fixed rate exchange system tied to the U.S. dollar which was convertible to gold.
Bretton Woods System
The Bretton Woods system implemented a fixed exchange rate regime. Currencies were pegged to the U.S. dollar, and the U.S. dollar was pegged to gold. This system was designed to provide stability to international trade and investments.
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fixed exchange rate
The overall aim of the Bretton Woods system was to create a stable international monetary environment, fostering economic growth and preventing the competitive devaluations that had contributed to the Great Depression.
stable currency system
While not a pure gold standard, the Bretton Woods system retained a connection to gold. The U.S. dollar was convertible to gold at a fixed rate, providing confidence in the value of major currencies.
gold standard
Established to promote international monetary cooperation, the ___ aimed to prevent currency crises and provide short-term financial assistance to member countries facing balance of payments problems. Member nations contributed to a pool of resources (quota subscriptions) from which countries in need could borrow.
international monetary fund, established tungod sa bretton woods system
Created to provide long-term financial assistance for the reconstruction and development of war-torn or economically struggling nations. The ___ focused on funding infrastructure and development projects to promote economic growth.
world bank
In a televised address, he announced a series of measures, including the suspension of the U.S. dollar’s convertibility to gold. This decision was a response to economic challenges, including a growing U.S. trade deficit and concerns about the sustainability of the gold-backed system.
Nixon shock
President Richard Nixon
policy that encompasses both politics and economics and seeks to transfer the control of economic factors from the public sector to the private sector
Neoliberalism, challenge Keynesian Orthodoxy
involves a combination of classical liberalism ’ s commitment to individual liberty with neo classical economics devoted to the free market and opposed to state intervention in that market (Harvey, 2005).
neoliberalism
