Week 4: The State and Financial Flashcards
What would a hyperglobalist say?
globalization unites people in borderless (no states) world with one economy
What is the problem with a borderless world?
language, different college degrees, social structures, publicly protected and supported lands
State as ultimate gurantor
if economy is in crisis then state steps in and bails out economy
economic treaties and bail outs
State as manager of national economy
stimulate different parts of the economy
sets up foreign investment
economic policies to shape economic development
State as business owner
state owned enterprises (US postal service)
owned and managed by state
Government linked corporations (GLC)
state has stake in business but it is not managed by the state
State as provider of public goods and services
transportation, healthcare, public parks, infrastructure (highways)
Neoliberal state
state establishes and enforces market rules
no influence on private sector
Welfare states
finances part of state
higher taxes, but more government provided services like healthcare and education
good place to be poor, bad place for rich
Developmental states
state intervenes to spur economic development in certain industries
underde
Centrally planned states
no private land, everything in commune
state provided housing
market not responsive to consumers
Authoritarian states
centralized political power
former centrally planned states
mix of SOE and private firms
state controls private firms a lot
What is money? (4)
- holds value
- unit of value
- exchange between people
- exchange between things
Community banks
non-urban areas
non-profits
Securitization
issuing securities backed by CDOs
