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urgent question by Mine Aysen Doyran 05 January 2001 17:16 UTC |
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I am reading Tom Kemp's _The Climax of Capitalism:
The US Economy in the 20th century_. He says that one of the major causes
of the world economic crisis in the 1970s was inflationary pressures on
dollar. Then he continues by saying that "although bearing a family
resemblance of previous recessions , that of 1974-5, differed from
them in one salient aspect: there was no deflation; instead the dollar
continued to lose purchasing power and prices continued to rise. the clearing
of ground for recovery by a downward revaluation of assets and the lowering
of costs, thus restoring the profitability of capital, did not happen in
the classical manner. What did happen from about this time was that plants
that proved unprofitable in the recession did not re-open in the boom:de-insdustrialization
had begun. In response to the declining rate of profit at home, corporations
sought higher profits by transferring manufacturing facilities to low wage
countries". (p.184).
What the cause of _asian crisis_ compared to above
scenario? inflation or deflation problem?
any help greatly appreciated!!!
bye
Mine
--
Mine Aysen Doyran
PhD Student
Department of Political Science
SUNY at Albany
Nelson A. Rockefeller College
135 Western Ave.; Milne 102
Albany, NY 12222
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