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The Global Economic History

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The Global Economic History

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  • November 2012
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Throughout history many events have influenced the international economy. Oil has been a key product for many economies and has been instrumental in determining economic success or failure. Since World War II, sharp increases in oil prices have been the cause of economic instability and initiated recessions worldwide. In this paper I will address various major international economic events commencing with the aftereffects of World War II, their enduring impact on the world economy and monetary relations, and how they engendered the current high price of oil. These events will include the Bretton Woods decision of 1944, its impact on the Gold standard, as well as the creation of the IMF. It will also describe the 1971 lift of the pegged status of world currencies, the cause of the 1973 oil embargo and the recent 2008 oil crisis. Oil and World War II

During the 20th century, oil became the desirable alternative to coal. People found it to be less polluting and with the building of pipelines, oil was easier to deliver to the end-user. In the 1930’s large new resources were discovered in Texas, in fact it was so abundant, that it became cheaper than water at a given point. The investment and the technical proficiency of the major oil companies both in the United States and abroad, gave them a governing position in defining the rate of production and pricing of oil. During World War II oil was the essential product, in all its forms, to the Allied campaigns around the world. The abundance of oil drove the war determination of the United States and its allies into World War II .Without this particular resource; the war could not have been won. once processed or refined in various ways, oil was used for many purposes; it became the source or indispensable material for laying runways, making toluene for bombs, the manufacturing of synthetic rubber for tires, and the distilling into gasoline (particularly at 100-octane levels) for use in trucks, tanks, jeeps, and...

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