Please answer the following short answer questions: 1. After World War II most w
ID: 1201293 • Letter: P
Question
Please answer the following short answer questions:
1. After World War II most western countries moved away from free markets and constructed 'mixed economies' combining nationalization, state planning, and Keynesian demand management. Why were policymakers so keen to abandon markets and adopt state planning during this period?
2. Were these the best policies for these states to follow at the time? If not, why did so many smart people get it wrong?
3. What led to the consensus supporting 'mixed economies' to collapse in the Great Britain and the United States (and elsewhere)? Why did these economies move toward deregulation and privatization? What led to the 'revival of the market'?
4. How similar is the global economy of 2007 to that of 1907?
5. What is contagient?
Explanation / Answer
1. After end of World War II and more importantly end of colonization major economies start moving towards mixed economies where in free market trade is inhibited on account of generating trade by national means. All economies tried to abandon the free market because of fear of colonization by developed economies again on developing. No economy wants to completely liberazed trade with other economies because of fear that it might again lead to invasion and repeat of cycles happened before WW II
2. The best polices was the liberization of trade along with privitization. Whether free market to exist between economies is debatable but instead of license system liberization of trade polices should have been adopted for better development of economies.
3. Since after WW II economies has completely barred the concept of free trade it leads to saturation of trade within the economy and finally burst of bubble. Deregulation and privitization in major sectors such as steel, rail etc, has helped at that time to use other concentrated money in economy and revival of major economies.
4. There were many similarities the major one is Debt crisis for financial institution and finally their collapse
5. Contagient is a french word meaning:
Copied from Wikipedia. I could not find this word anywhere