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DEglobalizaion and Social Safety Nets in Post-Covid-19 Era: Textbook Macroeconomic Analysis

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  • Razin, Assaf

Abstract

Globalization is expected to be reversed, at least partially, in the post pandemic era. The Great Financial Recession of 2008â??10 marked a historic turning point in the direction of weakening the degree of global economic integration. Now, in the post-pandemic era, policymakers appear poised to take deliberate steps to reinforce the movement toward de-globalization. At the same time, safety nets are expected to be strengthened. In this paper, we develop a model, with which we analyze central macroeconomic interactions between globalization and safety nets. We put together stylized elements of trade globalization, financial globalization, international tax competition, immigration, and welfare state, all in a two-skill, two-period stylized model, where policy (taxes and social benefits) is determined through majority voting.

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  • Razin, Assaf, 2020. "DEglobalizaion and Social Safety Nets in Post-Covid-19 Era: Textbook Macroeconomic Analysis," CEPR Discussion Papers 14776, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:14776
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    As found on the RePEc Biblio, the curated bibliography for Economics:
    1. > Economics of Welfare > Health Economics > Economics of Pandemics > Specific pandemics > Covid-19 > Trade and Globalization

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    More about this item

    Keywords

    deglobalization; social safety nets;

    JEL classification:

    • F15 - International Economics - - Trade - - - Economic Integration
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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