By the early 1970s, the “golden era” of postwar prosperity and growth in the advanced capitalist countries had come to an end. Since the mid-1970s most OECD countries have experienced alternating phases of growth and stagnation, punctuated by the outbreak of episodes of severe and debilitating financial instability. In many ways, it appeared that the capitalist world economy had entered into another long era of laissez-faire and globalization, reminiscent of the period preceding the First World War. Globalization set in motion destabilizing forces, as capital was no longer constrained by their respective national markets.
KeywordsCentral Bank European Economic Community Current Account Deficit International Liquidity Reagan Administration
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