Activity

1. Liberalization (drop tariffs, subsidies, capital controls, export restrictins, etc.)
2. Privatization (sell state holdings, which in many cases are substantial)
3. Stabilization (allow currency to float at its "natural" [usually lower] exchange rate)

As this outline of the neoliberal policy…

[...] during the crisis that led to the Volcker coup [...], US interest rates skyrocketed, and other nations had to follow suit, just to prevent international finance from dropping their currencies and bonds in favor of those of the US--and in the process killing non-US exchange rates and economies…

[...] bond yields also have a massive impact on domestic interest rates. Domestic bands will lend to local enterprises only at rates competitive with what they can earn by investing their money elsewhere. If they are confident they can get 12 percent return on their money buying bonds, they are goi…

[...] Nixon's attempt to inflate his way out of crisis was not only directed at domestic problems. He was also effectively trying to export inflation, and reduce the real value of the US foreign debt [...]

One of the more common paths this transition took--in Canada, the US, and the UK among others--had three basic steps:

1. [...] the government [...] tried to inflate and/or stimulate the way out of it [...] By the early 1970s, increasing inflation proved this tactic ineffective on its own.
2. By…