British Empire Economic Conference
Encyclopedia
The British Empire Economic Conference (also known as the Imperial Economic Conference or Ottawa Conference) was a 1932 conference
of British colonies and the autonomous dominion
s held to discuss the Great Depression
. It was held between 21 July and 20 August in Ottawa
.
The conference saw the group admit the failure of the gold standard
and abandon attempts to return to it. The meeting also worked to establish a zone of limited tariff
s within the British Empire
, but with high tariffs with the rest of the world. This was called "Imperial preference
" or "Empire Free-Trade". This abandonment of open free trade
led to a split in the British government.
The conference was especially notable for its adoption of Keynesian
ideas such as lowering interest rate
s, increasing the money supply
, and expanding government spending
.
Meeting
In a meeting, two or more people come together to discuss one or more topics, often in a formal setting.- Definitions :An act or process of coming together as an assembly for a common purpose....
of British colonies and the autonomous dominion
Dominion
A dominion, often Dominion, refers to one of a group of autonomous polities that were nominally under British sovereignty, constituting the British Empire and British Commonwealth, beginning in the latter part of the 19th century. They have included Canada, Australia, New Zealand, Newfoundland,...
s held to discuss the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
. It was held between 21 July and 20 August in Ottawa
Ottawa
Ottawa is the capital of Canada, the second largest city in the Province of Ontario, and the fourth largest city in the country. The city is located on the south bank of the Ottawa River in the eastern portion of Southern Ontario...
.
The conference saw the group admit the failure of the gold standard
Gold standard
The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard...
and abandon attempts to return to it. The meeting also worked to establish a zone of limited tariff
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....
s within the British Empire
British Empire
The British Empire comprised the dominions, colonies, protectorates, mandates and other territories ruled or administered by the United Kingdom. It originated with the overseas colonies and trading posts established by England in the late 16th and early 17th centuries. At its height, it was the...
, but with high tariffs with the rest of the world. This was called "Imperial preference
Imperial Preference
Imperial Preference was a proposed system of reciprocally-levelled tariffs or free trade agreements between the dominions and colonies within the British Empire...
" or "Empire Free-Trade". This abandonment of open free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
led to a split in the British government.
The conference was especially notable for its adoption of Keynesian
Keynesian economics
Keynesian economics is a school of macroeconomic thought based on the ideas of 20th-century English economist John Maynard Keynes.Keynesian economics argues that private sector decisions sometimes lead to inefficient macroeconomic outcomes and, therefore, advocates active policy responses by the...
ideas such as lowering interest rate
Interest rate
An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for...
s, increasing the money supply
Money supply
In economics, the money supply or money stock, is the total amount of money available in an economy at a specific time. There are several ways to define "money," but standard measures usually include currency in circulation and demand deposits .Money supply data are recorded and published, usually...
, and expanding government spending
Government spending
Government spending includes all government consumption, investment but excludes transfer payments made by a state. Government acquisition of goods and services for current use to directly satisfy individual or collective needs of the members of the community is classed as government final...
.
Source
- British Empire Economic Conference (Time magazine)
- Barry Eichengreena and Douglas A. Irwin, Trade blocs, currency blocs and the reorientation of world trade in the 1930s, Journal of International Economics , Volume 38, Issues 1-2, February 1995, Pages 1-24
- Robert A. MacKay, Imperial Economics at Ottawa, Pacific Affairs, Vol. 5, No. 10 (Oct., 1932), pp. 873-885
- Maxwell Slutz Stewart, The Ottawa conference, Foreign policy association, incorporated, 1932