Introduction
Introduction

Summary/Abstract: A number of very important changes took place in the international financial system during the early 1970’s. They were caused by changes in the balance of economic power between developed countries. T aking the dollar off the gold standard meant that the major currencies were no longer formally backed by precious metal. In response to the new conditions on currency and financial markets, a number of previously undreamt-of financial instruments began to appear. Their impact would be far-reaching, particularly on the two pillars of national economic policy – monetary and fiscal policy. In essence, these developments represented a form of struggle between the main financial corporations, with their high degree of freedom in determining business policy and influencing events in the global economy, on the one hand, and national governments, attempting to influence the business cycle and to direct economic development, on the other.

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