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Macroeconomic Performance in the Bretton Woods Era and After

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  • Gavin Cameron
  • Chris Wallace

Abstract

During the Bretton Woods era, OECD countries grew at historically unprecedented rates. This Golden Age has many possible explanations, ranging from the return to liberal policies in international trade to a backlog of profitable growth opportunities after the neglect of the 1930s and wartime damage. Eichengreen (1996) has argued that the proximate cause of the rapid growth was high investment, and that this high investment was made possible by certain institutions that were particularly well suited to reconstruction and growth. On the domestic side, these institutions led to high investment rates and moderate wage claims. This paper interprets the interaction between unions and firms as a coordination game. The risk-dominant equilibrium is selected via a global game argument. Only small changes to the payoffs are necessary to explain a change in the selected equilibrium and, therefore, the growth slowdown. Copyright 2002, Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Review of Economic Policy.

Volume (Year): 18 (2002)
Issue (Month): 4 ()
Pages: 479-494

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Handle: RePEc:oup:oxford:v:18:y:2002:i:4:p:479-494

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Citations

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Cited by:
  1. Harrison, Mark, 2011. "Capitalism at War," CAGE Online Working Paper Series 60, Competitive Advantage in the Global Economy (CAGE).
  2. Crafts, Nicholas, 2010. "The Contribution of New Technology to Economic Growth: Lessons from Economic History," CAGE Online Working Paper Series 01, Competitive Advantage in the Global Economy (CAGE).
  3. Alka obadić & Sanja Porić, 2008. "The coordination between education and employment policies," EFZG Working Papers Series 0802, Faculty of Economics and Business, University of Zagreb.
  4. Scharf, Kim, 2011. "Private Provision of Public Goods and Information Diffusion in Social Groups," CAGE Online Working Paper Series 48, Competitive Advantage in the Global Economy (CAGE).
  5. Nicholas Crafts & Marco Magnani, 2011. "The Golden Age and the Second Globalization in Italy," Quaderni di storia economica (Economic History Working Papers) 17, Bank of Italy, Economic Research and International Relations Area.
  6. Crafts, Nicholas & Toniolo, Gianni, 2008. "European Economic Growth, 1950-2005: An Overview," CEPR Discussion Papers 6863, C.E.P.R. Discussion Papers.
  7. Gavin Cameron, 2005. "Economic Policies for Growth and Employment," Economics Series Working Papers 249, University of Oxford, Department of Economics.

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