Introduction to IPE Flashcards
Define GPE
- Interrelationship between public and private power in the allocation of scarce resourcES
what is the view on markets for economics
Allow efficient distribution and allocation
Individuals are informed and make mutually advantageous exchanges through markets
explain view on markets of IPE
Not natural mechanism Embedded in social relations,
Form and function shaped by political, social, cultural and religious practices and norms
E.g. market participants, e.g. property market not allowing woman
What two events resulted in the separation of politics and economics
Marginal revolution of 1870s
• Focus on individuals, marginal utility
Neoclassical economics from 1970s
• Politics=hinders in market of efficient outcomes // marginalised
what are the three core assumptions of IPE (Underhill)
a. Political and economic domains cannot be separated
b. Political interactions are central to structure of markets
c. Domestic and international spheres cannot be meaningfully separated
what are the 8 stages of the history of the global economy
- early 16th cent
- industrial revolution (classical liberalism)
- WWI + inter war period
- Great depression
- WWII to late 60s (embedded liberalism)
- post war growth
- nixon shock (neoliberalism)
- decline of welfare state
describe 16th century global economy
- Competition among European monarchs to amass wealth (and power) by extending their markets through building of empires
o = enmeshment of communities across glove in European economies (=Eurocentric economy)
mercantilism
what is mercantilism
power= wealth
what were the basic points of the global economy during the industrial revolution
- global integration increase through technology developments= enabled movement of goods, people (migration) and ideas
- little pattern of trade shift (bilateral, not dependant on institutions, tariffs remained to protect domestic producers)
explain the institutional arrangmements of the industrial revolution
- despite Expansion of economic integration but also lack of institutionalization
o Only the gold standard: price of currency converted to price of gold
o Fixed exchange rate= Provided certainty for traders
What era of liberalism was there during the industrial rev
classical
explain the global economy during WWI and inter war years
- Ended era of intensified trade (world trade declined 2/3 by ‘34
o Chaos reflection of inability of govs to agree on measures to restore stability + beggar thy neighbour policies - Fundamental problem: inability of states to construct viable international financial system
- Collapse of gold standard
o Saw limited certainty
-
why did international trade collapse during the great depression in 1929
- International trade collapsed as governments pursued protectionist measures in an attempt to strengthen domestic recoveries
what era of liberalism was during WWII to late 60s
embedded
when was the bretton woods conference
wwii after