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washington consensus
basically, the washington consensus is the name for a set of economic policies that came out of washington, d.c., in the late 1980s. picture this: latin american countries were dealing with debt crises, inflation through the roof, and overall economic chaos. so, economists from places like the imf, world bank, and the u.s. treasury got together and said, "alright, here's the game plan to fix this."
the game plan boiled down to about ten policies, stuff like:
- cut government spending
- open up to international trade
- privatize state-owned companies
- encourage foreign investment
- deregulate industries
- keep taxes simpler and broader
the thinking was, if you let markets work freely, economies wou…