By Gerald Epstein
How is the worldwide economic climate laid low with elevated militarization, inequality among countries and periods, environmental degradation, and U.S. monetary decline? What are the present debates and matters? Can unfastened company and govt deregulation remedy international fiscal difficulties? because the world's consciousness is targeted at the international financial system, 25 activist economists tackle those and plenty of different questions. Essays in "Creating a brand new international economic system" describe in obtainable language such advanced subject matters because the foreign debt, Keynesianism, alternate coverage, immigration, and drug exchange. as well as studying present themes and debates, participants additionally supply replacement suggestions on subject matters usually overlooked in conventional economics curricula. Essays clarify improvement recommendations and markets in Latin the US, japanese Europe, Africa, and Japan. for college kids, activists, and common readers, this well timed assortment explains nationwide and foreign financial dilemmas that may more and more problem us within the subsequent century. writer word: Gerald Epstein is affiliate Professor of Economics on the collage of Massachusetts, Amherst, and a employees economist for the guts for well known Economics. Julie Graham is affiliate Professor of Geography on the collage of Massachusetts, Amherst, and a employees economist for the heart for well known Economics. Jessica Nembhardt focuses on foreign funds, macroeconomic coverage, and improvement. She got her Ph.D. in economics from the college of Massachusetts, Amherst.
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Additional resources for Creating a New World Economy: Forces of Change & Plans for Action
The United States is not in such a difficult position. Since it can pay for its imports in dollars, it need not persuade others to lend it money or buy its resources. l So belt tightening and austerity are not so necessary. Moreover, the fact that only some countries produce international money (like the dollar) and all countries need it gives banks from the international money countries an important edge: countries that need international money will usually want to borrow money from these banks and are willing to pay high fees and interest rates in the process.
7 Index of real GDP growth rate in Latin America and OEeD countries, 1929-1938 (1929 = 100). Source: Maddison 1989:57. How can we make progress in understanding these three trends of the global economy: the ups and downs, the uneven development among and within countries, and the expansion and contraction of international interactions among nations? The key is to understand the importance of three ideas for international capitalism: profits, power, and cooperation. Profits are the driving force for a capitalist economic system, power underlies the production and distribution of profit, and cooperation is necessary to prevent the competitive struggle for profits from breaking down into chaos on an international scale.
Politicians and businesspersons from the United States have declared victory in the cold war: capitalism won, they shout. The coUapse of communism and the rush to create private property and "free" markets in previously Communist countries are compelling testimony to this claim of capitalist victory. If capitalism seems on the rise, it is of a particular brand. The same politicians, economists, and business consultants who tout the victory of free markets tell us that we are witnessing the creation of a truly global capitalism-where the goal of businesses and nations around the world is to become "competitive" in the global marketplace; the key is to attract investment from around the globe; the challenge is to export products; and the winners will be the countries that can fight it out, lean and mean, in the global economlY.
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