Massive amounts of money are being invested and withdrawn from investment across national borders as global financial markets decide where capital should and should not go. However after World War II, the Bretton Woods system of rules for the operation of the global economy was developed following the Great Depression. The essence of this has been to liberalize trade further and to deregulate capital movements altogether. This results in unstable and volatile
International Political Economy is a theory that discusses the collapse of boundaries between economics and politics. It is a study of the political economy of international trade, international finance, North-South relations, multinational corporations and supremacy. The term of International Political Economy emerged during the 1970s due to the collapse of the Bretton Woods system. This failure alerted the United States of the status and the weakness of economic fundamentals of the world order. There
deteriorating Ghanaian economy by means of liberalising the economy and removing controls (Kwakye and Sowa, 1993). The exchange rate market was no exception. The exchange rate policy of Ghana prior to the ERP was consistent with the then prevailing Bretton Woods System. At the time Ghana became independent, her accumulated external reserves was about $269 million (Jebuni et al, 1991). The Nkrumah government, which took over from the colonial government, embarked on an accelerated development and modernisation
CHAPTER TWO LITERATURE REVIEW 2.0 Introduction Over the past decades, the urge to increase foreign aid’s effectiveness has motivated numerous empirical studies to identify why aid programmes succeeds or fails. These studies underpinned the donor community’s attempt in the late 1990s to reform aid delivery, shifting from predominantly stand-alone projects and conditionality- led stand- structural adjustment programs toward partnerships and mutual accountability (World Bank, 1998). Besides research