IDEAS home Printed from https://ideas.repec.org/h/elg/eechap/20890_4.html
   My bibliography  Save this book chapter

The Fallacy of the Revised Bretton Woods Hypothesis

In: Neoliberalism and the Road to Inequality and Stagnation

Author

Listed:
  • .

Abstract

The Revised Bretton Woods hypothesis was a popular explanation of global economic developments in the 2000s, including the large U.S. trade deficits. The argument was that the international financial system had structural similarities with the earlier Bretton Woods (1946 - 71) arrangements, whereby the U.S. ran large trade deficits that provided financial assets which greased and encouraged global economic growth. This chapter challenged that view and argued the system was actually headed for a crash (as happened soon after in 2008). The reasoning was simple. The U.S. boom and U.S. demand for imports were built on household debt. When household borrowing eventually faltered owing to either debt limits or self-imposed unwillingness to take on more debt, the system would crash, pulling down both the U.S. economy and the global economy.

Suggested Citation

  • ., 2021. "The Fallacy of the Revised Bretton Woods Hypothesis," Chapters, in: Neoliberalism and the Road to Inequality and Stagnation, chapter 4, pages 49-65, Edward Elgar Publishing.
  • Handle: RePEc:elg:eechap:20890_4
    as

    Download full text from publisher

    File URL: https://www.elgaronline.com/view/9781802200072.00011.xml
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shrestha, Gitta & Pakhtigian, Emily L. & Jeuland, Marc, 2023. "Women who do not migrate: Intersectionality, social relations, and participation in Western Nepal," World Development, Elsevier, vol. 161(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:elg:eechap:20890_4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Darrel McCalla (email available below). General contact details of provider: http://www.e-elgar.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.