CONTEMPORARY WORLD
GOLD STANDARDS open trade system, create a
common system that would allow for more
IMF (INTERNATIONAL MONETARY FUND)
efficient trade and prevent the isolationism of
historical process representing the result of the mercantilist era (fixed exchange rate system-
human innovation and technological process. all based on the value of gold)
even IMF and ordinary people having a hard time WW1 countries depleted their gold reserve to
arriving at definition of globalization they both fund their armies, many were forced to abandon
agreed that DRASTIC ECONOMIC CHANGE is the gold standard
occurring
GREAT DEPRESSION started during 1920s and
UNCTAD (UNITED NATIONS CONFERENCE extended up to 1930s became more difficult as
TRADE AND DEVELOPMENT) the global economic crisis, some economists
argued caused by gold standard, limited amount
of circulating money and reduced demand and
SILK ROAD oldest international trade route. Path consumption.
ways in the ancient world from china to Middle
East and to Europe. 130 BCE until 1453 Han
dynasty opened trade to west and Ottoman BARRY EICHENGREEEN argues about the us
Empire closed it recovery really began when having abandoned
the gold standard, the us goverment was able to
SILK - is the most profitable products traded freeup money to spend on reviving the economy
WW2 other major industrialized countries
DENNIS O. FLYNN AND ARTURO GIRALDEZ followed suit
historian and according to them all important
populated continents began to exchange
products continuously both with each other BRETTON WOODS SYSTEM was inaugurated in
directly and indirectly via other continents 1944 during United monetary and Financial
conference to prevent the catastrophes, this
system was largely influenced by the ideas of
GALLEON TRADE (16th to 18th century) traced british economist
back by Flynn and Giraldez, that connected JOHN MAYNARD KEYNES believed that
manila in the Philippines and Acapulo in Mexico. economic crises occur when a country does not
Also it is the first time that Americans have have enough money, but when money is not
directly connected to Asian being spent and, thereby not moving, also when
Also a part of the age of mercantilism was thus economic slowdown goverments have to active
also a system of global trade with multiple role in managing spending served as the anchor
restriction for what would be callled a system of GLOBAL
KEYNESIANISM
NEOLIBERALISM new form of economic thinking
that critics labeled, became the codified strategy
2 FINANCIAL INSTITUTIONS
of united states of treasury department, world
IBRD (INTERNATIONAL BANK FOR bank
RECONSTRUCTION AND DEVELOPMENT) OR
WORLD BANK responsible for funding postwar
reconstruction projects WTO (WORLD TRADE ORGANIZATION) a new
organization founded in 1995 to continue the
IMF (INTERNATIONAL MONETARY FUND) global
tariff reduction under the GATT
lender of last resort to prevent individual
countries from spiraling into credit crises
WASHINGTON CONSENSUS a policies that they
came to forwarded, its advocates pushed for
GATT (GENERAL AGREEMENT ON TARIFFS AND
minimal goverment spending to reduce
TRADE) main purpose was to reduce tariffs and
goverment debt. privatization of goverment-
other hindrances to free trade
controlled services water, power,
communication, and transport. certain
industries would be affected and die, but they
OAPEC (ORAGANIZATION OF ARAB considered this "shock therapy" necessary for
PETROLEUM EXPORTING COUNTRIES) long term economic growth.
OPEC (ORGANIZATION OF PETROLEUM Working definition of global- expansion and
EXPORTING COUNTRIES) intensification of social relations and
consciousness across world time and across
world space
OIL EMBARGO affected the western economies
that were reliant on oil. stock markets crashed in
1973-1974 after US linking the dollar to gold,
effectively ending the bretton woods system
STAGFLATION a phenomenon in which a decline
in economic growth and employment
(stagnation) takes alongside a sharp increase in
prices (inflation)
FRIEDRICH HAYEK AND MILTON FRIEDMAN
economicst argued about that the goverment
practice of pouring money into their economies
has caused inflation by increasing demand for
goods without necessarily increasing supply.
