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Q. How did countries use their policy tools to regain internal and external balance after the first oil shock of 1973?
Answer: Seeing that the recession deepened over 1974 and early 1975 most governments shifted to expansionary economic and monetary policies. The OPEC countries couldn't go up spending quickly enough to match their increased real income and were running a substantial current account excess in 1975 and 1976.
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Q. Illustrate the reasons for the economic "miracle" of the East Asian countries between 1960 and 1997. Is it only due to the common Asian practice of industrial policy and busin
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