To What Extent Were Hobsbawn’s “Crisis Decades” the Result of the “Golden Years” of the International Economy?

The swing of the orbicular economic cycle is inevitable. From the Great pretermit of the 1930s to even the recent Financial Crisis of 2008-2009, the economy has periodically dipped and diverted from its booming trend. It depends that the higher the success, the worse the apoplexy as well. It is assumed here that the Golden Years of the world-wide economy more commonly entitled the Golden board of Capitalism (GAC) was no different. Indeed many of the problems that marked the Crisis Decades originated from the GAC, much(prenominal) as the rise of New Protectionism and the trade imbalances. Other problems that marred the global economy in the 1970s were the oil and debt crisis. Although it whitethorn seem that these were merely caused by the emergence of the third domain of a function countries and had no relation to the GAC, it shall be established that the GAC had in reality provided the pose and thus indirectly caused these problems. The Golden Years were the re sponse of US dominance, which unfortunately was also the root cause for the outbreak of the Crisis Decades, as it brought about trade imbalances. With the overheating of the economy payable to the super rapid growth, the productive capacity was unable to keep up up with demand, hence resulting in stagflation in the US. This is seen in that dapple rising prices averaged at 3.

8% in the period 1966-1969, it rise to 5% in 1970. As a result since US was the major job country, this stagflation thus affected the world as well. This took the form of the leave of the Bretton Woods System, which had established a dod ging of fixed swop and had promoted stabili! ty and predictability in the economy. Thus without it, travel exchange evaluate were prevalent. Hence this shows that the GAC had led to the trade imbalances and drifting exchange range which laid the foundation for the rise of otherwise problems which made up the Crisis Decades. In addition, the number of competitors in the internationalist economic vault of heaven also increased with the Golden...If you wish to get a fully essay, order it on our website: OrderCustomPaper.com

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