Events that change Nations - P4-db Essay Example | Topics and Well Written Essays - 500 words

Events that change Nations - P4-db - Essay Example The lack of conflict and the breakdown of national economies that came in the aftermath of the First World War, forced nations to repair the damage and this is why economic science flourished. As a result, several economic models, theories and principles were introduced. I would cite two important developments that have contributed significantly to the course of modern history: the Keynesian economic tradition; and, the emergence of postwar globalization. The events in 1920s and 1930s such as the high postwar inflation rates, the instability of stock prices, unemployment, tariff dynamics, and so forth occupied John Maynard Keynes and shaped his economic ideas. Keynes was involved in the major events of his time and would be pivotal in the development of modern economic thought afterwards. According to Alan Meltzer (1988), today, if one looks back and examine Keynes works, he or she would be struck by the labored arguments and definitions that are very much applicable today. (p. 18) In reading his works, for instance, we are able to see how Keynes predicted problems, failures, and impending disasters including the possible solutions for governments. The realizations of Keynes’ predictions influenced the modern economic thought and, certainly, his reputation so much so that governments used his ideas to guide their economic policies today. One could see this in the recent policies of British Prime Minister Gordon Brown and US Pr esident Barack Obama in their strategies to rescue their respective economies from current global financial crisis. The second important development during the 1920s and the 1930s was the emergence of globalization. During this period, traces of globalization started to emerge as countries started the initiatives to enforce tariff truce as well as agreement that would regulate quotas and other restrictions. When the Reciprocal Trade Agreements Act of 1934 or Tasca 1934 was enacted by several European