Question

discuss the major global economic developments since world war II

Answer 1

There have been major economic developments in the US and the rest of the world since world war ll. From the 1940s to 1960s, it was a postwar boom for the US economy as production expanded at a large scale. The industrial economic base was now transforming into a service economy and gradually small companies were merging into big corporations.

During this period, Keynesian theories were dominant which emphasized the role of government in stabilizing the economy. However, the post-war boom ended in 1970s reasons being the oil price hike of 1973 and stock market crash, increasing demand for imports and led to stagflation as people were struggling to find jobs.

During this time, people moved from the Keynesian perspective and President Ronald Reagan was elected in the 1980s who became famous for his economic policies of deregulating markets and cutting taxes drastically. In the 1980s, the economy started recovering by cutting money supply inflation was controlled and unemployment lowered.