FAILED ATTEMPT TO CREATE EFFECTIVE DEMAND IN THE WORLD ECONOMY IN THE 1970S AND 1980S THROUGH THE EXPORT OF GOODS, SERVICES AND CAPITAL AS WELL AS FOREIGN DEBT. TOPICALITY OF MICHAŁ KALECKI’S THEORY
DOI:
https://doi.org/10.19251/ne/2021.34(6)Keywords:
Michał Kalecki, effective demand, export of goods and services, export of capital, foreign debt, debt crisis, creditors and debtors, direct and portfolio investments, international financial and euro-dollar markets, underdeveloped countriesAbstract
The article in a general sense has a direct reference to the last two works written and published by Michał Kalecki: Theories of growth in various social systems (1970) and Notes on the “breakthrough reform” (1971). M. Kalecki tried to draw attention to theoretical problems (the theory of dynamics and the theory of economic growth) and practical issues related to the functioning of modern capitalist economies, at the same time formulating references and opinions on "mixed economies" (developing countries) and socialist economies (countries Soviet bloc). Starting from the turn of the 1960s and 1970s, new phenomena and processes began to occur in the capitalist economies of highly developed countries and developing countries, which disturbed and then upset the existing balance and stabilization of world capitalism. The search for new ways to solve the structural problems of capitalist economies, which M. Kalecki wrote about and drew attention to, starting from the 1930s and ending in the 1960s. capitalist economies. There was a failed attempt to create effective demand in the world economy in the 1970s and 1980s through exports of goods, services and capital, and foreign debt. The late 1960s saw a series of events prelude to the subsequent turbulent changes in international economic and financial relations. The introduction of a two-tier gold price, the revaluation of the West German mark, the devaluation of the French franc and the pound sterling, France's enforcement of the convertibility of the dollar into gold, or the emergence and development of the eurodollar market and the build-up of huge short-term US liabilities to foreign countries - were serious symptoms of serious disruptions in the international monetary system and a crisis of confidence in its key currency, the US dollar. These phenomena were certainly related to the changing balance of power in the world economy, mainly with the growing economic importance of Japan and the EEC member states. The changes that took place in the 1970s were primarily the result of a combination of several factors that significantly influenced the situation in the global economy. Among the factors favoring international capital flows, the following should be mentioned: the presence of significant surpluses in the balance of payments of oil-exporting countries and several highly developed capitalist countries, the achievement by other Western countries (except the USA) of the technological and economic level that allowed and, in a sense, forced foreign capital expansion of the largest companies, deepening payment difficulties and growing external debt of most economies in the world.
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