World Inflation and the Developing Countries

By Surjit S. Bhalla; Gabriel Siri et al. | Go to book overview

CHAPTER ONE
Introduction

WILLIAM R. CLINE

INTERNATIONAL economic fluctuations in the early 1970s confronted the developing countries that do not export oil with a series of economic shocks. Unprecedented global inflation in 1973 and 1974, including the quadrupling of oil prices in 1974, was followed in 1974 and 1975 by the most severe world recession since the Great Depression of the 1930s. The sharp worldwide business cycle of 1973-75 followed a long period of buoyancy in the international economy, marked by high and relatively steady growth in both industrial and developing countries and by price stability in most industrial countries (except for the brief inflation associated with the Korean War). During this long phase of international prosperity, industrial countries progressively lowered their tariff barriers to trade and moved from a patchwork of controlled national capital markets to an internationally integrated financial system with freedom of capital movement and with a growing role played by the new Eurodollar market.

In the 1960s the developing world produced a number of remarkable success stories as countries such as Korea, Taiwan, and Brazil achieved especially high growth rates. A common theme of their success was the outstanding performance of their exports. Their "economic miracles" arose in part from an unusually favorable international economic environment.

The external climate began to turn hostile as the Bretton Woods monetary system weakened, with the massive flow of dollars out of the United States in 1971, the suspension of the dollar's convertibility into gold, and the realignment of exchange rates. The international economy accelerated into a sharp business cycle in 1973 when commodity prices rose dramatically, led by food price increases brought on by crop failures in 1972, and nourished by demand pressures from the internationally synchronous boom of 1973. Commodity price inflation continued into 1974 and rose

-1-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
World Inflation and the Developing Countries
Table of contents

Table of contents

Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 272

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.