CH.10 - A BREAKDOWN IN GLOBALIZATION (A WORLD BETWEEN WARS-) Flashcards
beggar-thy-neighbor policies
The use of trade or monetary policies, such as tariff systems or the exchange-rate system, to promote the welfare of one nation’s producers and labor at the expense, and relative impoverishment, of other nations’ producers and labor
budgetary constraints
Limits on the amount of money or resources that one can spend, which thus affect consumption choices
costs of adjustment
The challenges and dislocations that people and societies confront as they adapt to economic and social change
fallacy of composition
A strategic situation in which the outcome is different than simply the sum of the parts, either greater or less
flat currency
p.379
flat money
p.379
floating exchange rate
An exchange-rate mechanism in which a currency’s value is determined by market forces, rather than being fixed by a government
hegemony
p.405
hyperinflation
A period of rapid inflation that leaves a country’s currency virtually worthless
imperial preferences
A set of economic arrangements whereby a colonial power and its colonies, or former colonies, enjoy privileged access to each other’s markets
laissez-faire economy
p.371
liberal hegemon
p.405
strong-currency countries
State economies in which there are relatively small discrepancies between money supplies and reserve assets
structural condition
An event that affects everyone in the community and is not a function of an individual’s activities independent of contextual conditions
time-inconsistency problem
A policy dilemma in which the short-term demands upon policymakers are at odds with the long-term welfare of society
