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While the market tends to expand geographically as its participants pursue economic benefits, the state seeks to keep orderly everybody and everything within the territory it controls.Let's consider two hypothetical extremes in the state-market relationship.Between these two extremes lies most of the world as it is, characterized by regional integration projects such as the EU or the North American Free Trade Agreement.We can identify important swings during the history of capitalism over the last two centuries, either toward the market or the state. The 1944 Bretton Woods conference marked another swing back toward the market, but this time allowed for some degree of national autonomy.Turbulence returned in the 1970s, however, as the slow growth and high prices of "stagflation" and a global energy crisis pushed the pendulum back toward fully liberalized markets – a shift from the Keynesian to the Hayekian world, helped along by Margaret Thatcher in the U.K. and Ronald Reagan in the United States.Some propose reharmonizing international markets with national autonomy, as occurred under Bretton Woods.Brexit marks the beginning of the end of the latest era of globalization.
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