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Second midterm - Essay Example

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The economic era between the 1940s and 1970s saw the dollar as the world’s vital currency. This era seems long gone as the international economic…
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Second midterm
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Download file to see previous pages ar II, which also gets described as the short American century, represented a period of continuous prosperity for the American government and its economy. The shift in the international economic order has led to the US citizens’ increasing sense of disempowerment. The changes witnessed in the classical world economy have decreased the US government’s effectiveness in managing its economy.
The change from the Bretton woods based international economic system to a greater international economic integration based system has seen the US lose grip on it domestic economy. The Bretton wood’s system had contributed to the US leading the international economic order between the 1940s and 1970s. The Bretton wood’s system had allowed America to focus on the politics of its national security through the international economic integration it promoted. Through the Bretton wood’s system, the US spent less of its money in rebuilding the economies of Western Europe and Japan. The collapse of the Bretton Wood’s system meant that the US had to put preference in international markets over its domestic considerations of national security. The new contemporary international economic world order has seen countries such as China and Singapore also emerge as serious global economic powerhouses. With the new found international economic system, the relevance of the dollar has dwindled as each and every country strives to use their currency as a means of trade. The US massive foreign debt has inflicted heavily on the predominance held before by its dollar as an international currency.
The contemporary international economy that took over the American led Bretton Wood’s system has also allowed for almost every country in the globe to engage in international trade, finance, and investment (Frieden 153). Under the previous classical economic order, only the US and its closest allies had control in setting up terms for international trade. The changing global environment created ...Download file to see next pagesRead More
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