Gerber Chapter 2 Growth, Globalization, and Financial Crises Four Eras of Globalization 1. First Wave 1870-1914 2. Interwar Instability 1914-1950 3. Bretton Woods and the Golden Age 1950-73 4. Second Wave 1973-present Below are listed some characteristics of some of these eras. For each item below, indicate to which of the eras (perhaps more than one) the characteristics apply. a. Tariffs were generally low (and lower than in the period prior to the era) b. World GDP grew at an unprecedented rate c. The Central Banks of leading countries held gold as an important part of their international reserves d. International capital movements were largely free of restrictions e. World trade grew faster than world GDP f. Banking and debt crises were rarer in this era than in any other era g. Foreign investment consisted mainly of railway bonds and sovereign loans h. Among the leading countries there were very few currency devaluations i. This era had more banking, currency, and debt crises than the previous period j. Deflation was a persistent problem during this era k. During this era, there was one country that took the leadership role in encouraging international cooperation; this country's currency served as the main form of international reserves of most other countries 1. Most of the large economies of the world adopted flexible exchange rates m. The International Monetary Fund and the World Bank emerged as important players in this era m. There were dramatic declines in transport costs of goods in international trade n. Most countries had closed capital markets o. There were massive daily short-term international capital flows