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American Economic History

American Economic History. Rebuilding the International Economy: October 12, 2007 Economics 113; U.C. Berkeley; Fall 2007 Brad DeLong. Lecture Outline. The Gold Standard The Interwar Catastrophe Post-WWII Bretton Woods Marshall Plan Political Democracy Mixed Economy Social Democracy.

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American Economic History

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  1. American Economic History Rebuilding the International Economy: October 12, 2007 Economics 113; U.C. Berkeley; Fall 2007 Brad DeLong

  2. Lecture Outline • The Gold Standard • The Interwar Catastrophe • Post-WWII • Bretton Woods • Marshall Plan • Political Democracy • Mixed Economy • Social Democracy

  3. The Gold Standard

  4. The Interwar Catastrophe

  5. Post-WWII • Bretton Woods • Marshall Plan • Political Democracy • Mixed Economy • Social Democracy

  6. Present at the Creation • The non-isolationist U.S. • Marshall Plan as symbol • After WWII, everything went right in the North Atlantic world… • Western Europe’s odds in 1945 do not look very good at all • U.S. arrives with carrots • And does a remarkably good job… • Two sets of comparisons • Post-WWII to post-WWI Europe • Post-WWII Europe to post-WWII Argentina

  7. Western Europe in the Aftermath of WWII • Slow and uneven recovery • Hunger • Absence of private capital • Political risks • How close to “the edge”? • What is “the edge”? • Bankruptcy of the “American model”?

  8. U.S. Post-WWII Intervention • UNRRA • Truman Doctrine • Marshall Plan • MSA • NATO • Carrots • But also conditionality • Mixed economy • Democratic politics • Openness to world trade

  9. Comparing Post-WWII to Post-WWI • WWII more destructive than WWI • Recovery faster after WWI • Not a “rubber band” affect • Not just a favorable post-WWII international environment

  10. Was it the Marshall Plan Directly? • Private investment boost? • 2% • Bottlenecks? • 3% to 7% at most • Market economies route around bottlenecks • But are direct effects the most important? • Would the market have been allowed to do its job?

  11. Europe in the Argentine Mirror • Juan Peron • Descamisados • National pride • Argentina stands up • Longer-run consequences of Peronism • Sounds a lot like interwar Europe, doesn’t it?

  12. Effects of U.S. Aid • Financial stability • Counterpart funds • Use of the stick… • Requirement of market economy • Requirement of international openness

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