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Nation-State in the Global Economy (Macroeconomic Policies (goals of…
Nation-State in the Global Economy
↓ state role
changes
ideological
technological
intl. political
globalization
limited role :!:
economic globalization
global economic integration
changes in trade flows
activities of MNCs
intl. finance developments
uneven
interdependence
"law of one price"
after Cold War
less integrated than before WWI
applicable to
U.S.
Western Europe
Japan ?
but still significant role :!:
technological “revolution” vs. globalization
PC unskilled labor
wages disadvantages
job security
biological engineering
problems results of unfortunate national policies
and gov. decisions, not EG
#
e.g. environmental damage
blaming EG - nationalistic attitudes
:red_cross: capitalism
xenophobic & nationalistic attitudes
Macroeconomic Policies
since end of WWII
promoting national economic stability
manage undesirable conditions of recession and inflation
managing a national economy
more complicated in integrated 21st century
but still works
tools
fiscal policies
taxation
government expenditures
monetary policies
determination of the size
velocity of a nation’s money supply
mechanisms not seriously affected by G
goals of economic policy
2) fixed exchange rates
3) national autonomy in macroeconomic policy
1) intl. capital mobility
trilemma & trade-offs
different preferences of different domestic economic interests