By Giles Radice
Manhattan 1986 1st St. Martin's Press. ISBN 0-312-73748-3. Hardcover. 8vo, 172p., black textile. high quality in VG plus DJ. No possession marks.
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Additional resources for Socialists in the Recession: The Search for Solidarity
At the same time, the breakdown of the Bretton Woods system of fixed exchange rates (and the size of the United States payment deficit) precipitated an exceptional movement of funds into international capital markets which rapidly fed through into the domestic money supply in many countries. There was a big rise in prices of property and gold (markets which are traditional havens for foot-loose funds) and a speculative element was added to commodity dealing, already stimulated by the upswing and harvest failures.
All three embarked on strategies to widen educational opportunities and all three believed in a close partnership with their respective trade union movement. Paradoxically, the British Labour Government, which had the closest organic ties with trade unions (in Sweden, the link is only at local party level, while in West Germany there is no formal relationship at all), had the most difficulty in preserving the partnership. This was in part due to errors of judgment by the government ministers (as we have seen) and in part due to the more decentralised and competitive nature of the British trade unions.
Unemployment in the United States fell rapidly, whilst the rate of inflation remained stable. Not surprisingly, the Republican President was reelected in 1984. However, although monetary policies have clearly been seen to have failed and some countries have successfully adopted full employment strategies, there were two features of modern industrial economies which made European decision-makers less confident about pursuing Keynessian policies in the mid1980s than they were in the 1950s and 1960s.