Week 1: Introduction: the meaning and the use of IPE Flashcards
What is International Political Economy?
- The study of how economic interests and political processes interact to shape government policies
- created as a breakdown of the boundaries between economics and politics
- Rapidly developing social sciences field of study
- Re-emerged in the 1970s
- Central focus: the interaction between economic and national interests
What is “classical political economy”?
- Prevalent during the 18th, and 19th centuries
- associated with thinkers like Adam Smith, and J. S. Mill.
- It focused on understanding the principles of governing the production, distribution and consumption of wealth in society
What is New Political economy?
- Interdisciplinary approach that encompasses elements of economics, political sciences and sociology to analyze the interaction between political and economic institutions.
- Focus on the role of government in the economy, the impact of globalization, and the distribution of power and resources.
What is New Institutional Economics (NIE)?
Economic perspective that attempts to extend economics by focusing on the institutions
- incorporates a theory of institutions - laws, rules, customs, and norms - into economics
- It builds on, modifies, and extends neoclassical theory.
What are Non- conventional approaches? Give examples
Approaches that deviate from the neoclassical economics in term of theory, methodology and policy prescription. F.e.: Marxism, feminist theory, post-Fordism
What is the Zero-Sum game?
One state’s loss is the other’s gain. It focuses on how much a country can gain compared to another (Economist Nationalism)
what is Positive- Sum game?
Focus on the overall gains of all the countries. The gain is coming from cooperation and collaboration
What are de differences between Political and economic decisions?
- Political decisions are not made by economy but by the states
- Economics decisions are made by others
