Evolution of Work and Monetary Shifts in the Late 20th Century
Work Culture Evolution
In the late twentieth century, the generalization of a single production model, like the Fordist paradigm, was not feasible due to varying circumstances. Business criteria, influenced by work culture, regional institutions, and union strength, determined the choice of technologies and work organization. Economic integration led to the globalization of labor contracts, deregulation, and market flexibility, resulting in increased inequality and wage polarization.
Monetary and Financial Disturbances
End of the Gold Standard
The Bretton Woods system faced challenges in the 1960s due to the increasing US balance of payments deficit. This deficit, caused by military expenditures and foreign aid, led to a surplus of dollars outside the US. By 1971, the trade balance deteriorated, and the dollar’s convertibility to gold became unsustainable. President Nixon suspended convertibility and devalued the dollar, leading to the collapse of the Bretton Woods system.
Consequences of the Changes
- Countries could settle deficits with their own currency.
- The dollar remained the international currency without gold backing.
- The US could finance expenses with its own currency, even with a trade deficit.
- The non-convertibility of gold highlighted the weakening US economy and facilitated a dollar-centric financial system.
Jamaica Conference Resolutions
- Abandonment of fixed parities.
- Definitive disappearance of gold as a monetary reference.
- Fixing currency values based on reserves and special drawing rights.
- Evaluation of SDR based on major currencies.