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EC1202

Week 5

TermDefinition
Era of Keynes 1929-1973
What was the main thing that happened in Keynes era? Bretton Woods Conference
What did the Bretton Woods Conference promote? New international economic system aimed at promoting global stability
What did the Bretton Woods System achieve? Fixed Exchange rate system Establishment of the International Monetary fund and World Bank Promotion of international co-operation
Golden Age Era From 1946-1973 Increased in economic output and standard of living
What was the use of fiscal policy aimed at doing? Adjusting aggregate demand to steer the economy towards its maximum output
When did the Bretton Woods System start to break down and why? The start of 1970s Increasing global trade imbalances Continued US inflation and budget cuts
Stagflation Rare economic condition caused by high inflation, slowed growth, and high unemployment
What do most governments have at their disposal to manage the economy Fiscal Policy Monetary Policy
What is Fiscal Policy Concerned with? Tax and Expenditure
What is Monetary Policy Concerned with? Interest Rates and Money supply
Who does the ECB make decisions for? The Eurozone and the European Union
Expansionary Policy Decrease in taxes Increase in expenditure Decrease in interest rates Increase in money supply
Contractionary Policy Increase in taxes Decrease in expenditure Increase in interest rates Decrease in money supply
Pro-Cyclical Reinforcing the current economic cycle
Counter-Cyclical Breaking the current economic cycle
Created by: peadarbailey1206
 

 



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