The choice of domestic policies in a globalized economy

Fischer, Justina A.V. (2012): The choice of domestic policies in a globalized economy.

Abstract

This paper describes the socio-economic adjustment effects exerted by globalization (taking as starting points competitive pressure, sectoral shifts, and financial market contagion) and discusses their relevance for domestic policy-making. I argue that these economic pressures and changes constrain government’s policy choice set to an extent that actual government policies are quite freed from any political ideological context. Important government tasks in a globalized economy include remedying information asymmetries and regulating markets as well as provision of essential goods.

• Item Type: MPRA Paper
• Language: English
• Keywords: globalization; international trade; domestic policy; deregulation; competition; financial markets
• Subjects: F - International Economics > F1 - Trade > F15 - Economic Integration; H - Public Economics > H4 - Publicly Provided Goods > H40 - General; H - Public Economics > H4 - Publicly Provided Goods > H41 - Public Goods; D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information ; Mechanism Design; H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies

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