The Great Depression and 'Embedded Liberalism'

The Great Depression posed a serious threat to democratic capitalism as economic nationalism flourished and Communism and Fascism offered alternative models. In response, democratic capitalism was remade. Domestically, inequalities of wealth were reduced and social welfare extended to create a social contract between capital and labour. Internationally, new organisations created a rules-based international regime. Together, the result was 'embedded liberalism' that contained economic national...