1. Why was the period from 1945 to 1973 considered a “Golden Age” economically? Did the U.S., Japan, and Western Europe perform well during this period?
a. Fast economic growth in any history of the world
b. Yes. They were able to rebuild their economies colonial rule came to an en and developing countries began to grow rapidly than the industrialized ones
c. Also a large benefit in natural resources- OIL
d. The Golden Age- a period of rapid economic growth in the U.S. and a wide range of countries elsewhere
2. International Forces: a. What institutions were formed after WWII to help the international economic system to flourish? Eg. World Bank, IMF, GATT i. International Monetary Fund (IMF)- established to help struggling nations by lending them ‘hard’ currencies such as the dollar with which to buy goods needed to develop countries ii. The International Bank for Reconstruction and Development- also the WORLD BANK- provided finance for major investment projects such as roads, bridges etc. Financing economic development and international financial relations iii. These two are still in existence and still play an important role in finance iv. International monetary system- value of the dollar in terms of gold would be fixed at $35 per ounce and other currencies would be valued at a fixed rate in relation to the dollar v. The General Agreement on Trade and Tariffs (GATT)- signed by 23 countries in 1947, promoted tariff reductions and the principle of nondiscrimination in trade policy- the idea that no signatory country would impose higher tariffs on one country than another 1. ‘most favored nation’ clause- any country with this status automatically received the lowest tariffs rates offered by signatory countries for the same category of foods vi. Marshall Plan- $12 billion