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SingaporeHistoryQuick questions
Growth of the Global Economy (1945-2000)
Quick questions on The oil crises and the end of Bretton Woods explained: H2 History
5short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is stagflation?Show answer
The combination of these shocks with the fading momentum of the boom produced an unfamiliar and troubling condition: stagflation, the simultaneous occurrence of high inflation and economic stagnation with rising unemployment. This combination confounded the prevailing economic orthodoxy, which had assumed that inflation and unemployment moved in opposite directions, so that a government could trade a little more of one for less of the other. Stagflation meant that the standard tools no longer worked as expected, and it discredited the postwar consensus on economic management. The 1970s were therefore a decade not just of slower growth but of intellectual crisis in economic policy.
What is the impact on the global economy?Show answer
The end of the long boom reshaped the global economy and its governing ideas. The discrediting of the postwar consensus opened the way for a shift toward more market-oriented policies in the following decade, with greater emphasis on controlling inflation, deregulation, and a reduced role for the state. The transfer of wealth to oil-exporting states redirected global financial flows. Floating exchange rates and freer capital movement laid some of the groundwork for the financial globalisation that followed.
What is q1?Show answer
Define stagflation. [4 marks]
What is q2?Show answer
Explain why the Bretton Woods system collapsed. [12 marks]
What is q3?Show answer
"The 1970s were a turning point in the global economy." How far do you agree? [20 marks]
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