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The choice of domestic policies in a globalized economy: Extended Version

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  • Fischer, Justina A.V.

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 the resulting transformations in the domestic economy constrain government’s policy choice set to an extent that actual policies are quite freed from any political ideological context. However, important government tasks in a globalized economy remain: remedying information asymmetries between buyers and sellers, regulating markets to combat externalities, as well as providing essential goods.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 37816.

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Date of creation: 03 Apr 2012
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Handle: RePEc:pra:mprapa:37816

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Keywords: globalization; trade; domestic policy; deregulation; competition; financial markets; government intervention;

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