Brexit-Rodrik-Stiglitz

Question 1

Rodriks trilemma

Answer 1

hyper globalization —(global governance)—democracy—(bretton woods comprimise)—national sovereignity—(golden straitjacket)—hyper globalization
3 cannot be at the same time, choose two

Question 2

The impacts of globalisation on Brexit

Answer 2

• protecting local/national identity
• more democratic control
• protecting their own rights
• lack of confidence in elites and experts (technocrats)

Question 3

Bad things waiting UK

Answer 3

• trade: half of it with EU
• GDP loss
• long run: productivity loss
• FDI loss (but complicated)
• Currency case: tourism, import export, unemployment

Question 4

Argentin - Cavallo’s plan

Answer 4

1991-2002

Convertibility plan: anchored the local currency to $

Question 5

Washington consensus 1989

Answer 5

1. fiscal policy discipline - small state
2. instead of subsidies, provision of pro-growth, pro-poor policies by ppp (public private partnership)
3. tax reform
4. market determined positive interest rate
5. competitive exchange rate
6. trade liberalisation (non-tariff barriers)
7. liberalization of inward FDI
8. privatization
9. de-regulation (lots of financial crisis followed)
10. Legal security for property rights

Question 6

Resulting crisis from wash cons

Answer 6

• asian crisis 1997
• brasil 99 huge devaluation
• argentina 2001
• loss of confidence

Question 7

Rodrik - Globalisation vs democracy

Answer 7

1. labor standarts
2. corporate taxes
3. health and safety standards (+env)
4. regulatory takings
5. industrial policies

Question 8

Stiglitz reasons of weak and unstable world

Answer 8

1. growing inequality
2. widespread austerity
3. china’s slowing economy
4. structural transformation: low productivity to high
5. global imbalances: deficit-surplus problem
6. large changes in oil prices
7. disfunctional global fin market
8. tightening of us monetary policy

Question 9

stiglitz agenda for sustainable government

Answer 9

1. climate change
2. reform fin markets
3. promote equality
4. beyond austerity
5. industrial policies

Question 10

stiglitz beyond austerity

Answer 10

1. capital budgeting
2. stabilization funds
3. development banks
4. balance budget multiplier
5. fiscal rules

Question 11

stiglitz global reforms

Answer 11

1. new global reserve system
2. global coordination to reduce global imbalances
3. global economic coordinating council
4. better ways of recycling surpluses
5. finance for development
6. action on climate change