Global Economy Essay Example | Topics and Well Written Essays - 2500 words

Global miserliness - Essay ExampleThis paper also argues that the globular system of economic affairs is prone to retell crises due to the nature of neoliberalism and capitalist forms of economic development through come in the globe, the following will explore the youthful global economic crisis and compare it with the Great Depression of 1929. Accordingly, the current economic crisis shares many parallels with the economic crisis that occurred fourscore geezerhood ago. This paper will look at the role of organizations such as the IMF in mitigating although not hindering the outbreak of the global economic crisis. The essay then concludes with an overview of the issues analysed (Harvey, 2007 33-27).Planned capitalism, expressed through political economic intervention and the Bretton Woods Agreements of 1944, exploded during the 1970s. Bretton Woods, which established both the World Bank and the IMF, symbolised the supremacy of the unify States in setting international monet ary policy. Hobsbawm argues that these two international institutions were de facto subordinated to US policy (1994 274). When the United States pulled out of the Bretton Woods monetary system in 1971 and allowed its currency to float in international markets, it caused a arrange reaction with unexpected global ramifications. Currencies were devalued across the board and the United States, as well as its Western allies, was ill equipped to deal with the resulting oil embargo implemented by OPEC two years later. When OPEC, the Organization of the Petroleum Exporting Countries, announced that it would no longer be shipping oil to countries that had support Israel in its war with Egypt and Syria in 1973, it triggered an international calamity known as the Oil Crisis of 1973. The Yom Kippur War as the war between Israel and the joint forces of Egypt and Syria in 1973 is now known inadvertently led to a global economic crisis OPEC members