Slides Flashcards
In 1933 Roosevelt was elected President thanks to his plan against the economic crisis, which was …
The New Deal
The New Deal’s aim was support the free entreprise guided by the State. It provided:
1. the control by the State of the banking and monetary system;
2. assistance to farmers and the limitation of agricultural production (Agricoltural Adjustment Administration)
3. Establishment of codes for fair competition (National Industrial Recovering Administration)
At the begging, the New Deal was rejected by the entreprendeurs and the Supreme Court. After 1936 Rooselvelt popularity increased, allowing him to adopt a larger policy inspired by the economist John Maynard Keynes: it consisted in the rise of pubblic deficit to avoid deficit-spending.
From 4 to 11 February 1945 was held the Yalta Conference. What was settled with this conference?
The United Nation
and it was also adopted the “Declaration of Liberated Europe”, which provided to set democratic governments in all of the European States occupied by Nazis.
Iron Curtain
It was the definition tha Churchill gave in 1947 to the separation of the two bloks, capitalism and comunism.
What were the european States under URSS’s control?
Romanian. Bulgaria, Hungary, Poland, Czechoslovakia, Yugoslavia, East Germany, Austia and Albania (till ‘60)
When was Marshall plan dropped?
The 5 June 1946. It was addressed to all the European State, included URSS who rejected the aid and force all the states under its influence to do the same.
When did Iran gain independece? From who?
The 21 February 1921 from Great Britain.
GB, who wanted to control the oil fiels, caused a revolt due to the large interferences in the Iran political and economic system.
When the covertibility of US$ into gold happened? Who was the autor of it?
15 August 1971, by President Richard Nixon.
What was the reason that bring Nixon to change the covertibility of the dollar?
At early 1969 Nixon administration had the priority to redefine US international monetary policy given the
weakening of the credibility of the dollar.
The Volker group report on June 1969 described the vulnerability of the dollar linked to gold and the fact that US could’t control the deficits.
What revolutionary consequence the devaluation of the dollar has on an international level?
The damage of the Bretton Woods system. It was a revolutionary change of the economic and monetary system.
What the National Security Study Memorandum 7 established?
The creation of a permanent Working Group to make recommendations on U. S. international
monetary policy, named the Volcker Group
(Paul Volker is an economist. From 1969 to 1974, Volcker served as under-secretary of the Treasury for international monetary affairs. He played an important role in President Nixon’s decision leading to the suspension of gold convertibility on August 15, 1971, which resulted in the collapse of the Bretton Woods system).
What was the US situation after August 1971, when Nixon broke the convertibility of the dollar?
The detachment from gold was successful:
- the dollar remain the global currency;
- the US gained the capacity to finance its deficit.
On the other side the new system
- hadn’t gain international legitimacy, it was instable and - caused the low level of competitiveness of US industries.
What were the consequences of the monetary system instability during the ‘70?
On October 1973 occured the first “oil crisis”:
- OPEC price rise in order to recovery the purchasing power. Here there’s the rise of third-worldism.
- OAPEC adopted an embargo targeted at nations perceived as supporting Israel during the Yom Kippur War.
