CH.14 - POLITICAL & ECONOMIC MARKET FAILURES & THREATS TO GLOBALIZATION (INTO THE FUTURE)

Question 1

gross domestic product purchasing power parity (GDP ppp)

Answer 1

p.547

Question 2

hegemon

Answer 2

A leader who helps to manage seemingly incompatible policy preferences across governments, establishes the rules of the game, and assumes a disproportionate share of the costs of maintaining those rules

Question 3

international reserve currency

Answer 3

p.555

Question 4

lender of last resort

Answer 4

A nation or bank that acts countercyclically to ensure an adequate supply of capital during economic crisis; a collective good

Question 5

liquidity

Answer 5

A measure of how mobile an asset is or how easily it can be exchanged; for example, cash is more liquid than land

Question 6

nominal GDP

Answer 6

p.547

Question 7

per capita income

Answer 7

p.547

Question 8

Washington Consensus

Answer 8

A policy agenda that places great emphasis upon the corrective pressures of market discipline and seeks to reduce government regulation and intervention in the economy by promoting economic openness in trade and capital movements, liberalization of financial markets, fiscal policies that lead to balanced budgets, anti-inflationary monetary policies, stability in exchange-rate relations, expansion of private enterprise, and a reduction in state-owned enterprises