Question

How did the industrial world ensure economic stability during post-war settlement?

Answer 1

An industrial society based on mass production needed mass consumption. Mass consumption needed high and stable income and stable income required steady and full employment. Government should take necessary steps to minimise fluctuations of price, output and employment. The target of full employment could be achieved only if government had the power to control flows of goods, capital and labour. It was supported by the United Nations Monetary and Financial Conference held in July 1944 at Bretton Woods. This is how they ensured economic stability during post war settlement.