GINS 2010 Lecture Notes - Lecture 2: Doha Development Round, Free Trade, General Agreement On Tariffs And Trade

• School: Carleton University
• Department: Global and International Studies
• Course: GINS 2010
• Professor: Pablo Heinrich

Document Summary

Institutions supporting global econ. integration: since the end of ww2, three key institutions have been set up to facilitate global econ. integration: world bank (wb), international monetary fund (imf), world trade. Organization (wto): these promote a system of: pro-market economic policies (privatization. deregulation, liberalization), open markets and exchange rates, open trade liberation. Trade protectionism leads to lower exon. output and more unemployment. Nancial integration is overly risky without change rate convertibility. Keeping currencies pegged to gold leads to worse recession and contagion. States need space to engage into de cits when facing recessions. New countries will aspire to higher levels of living and can not be stopped. Whoever provides them with a better deal will win them over (us vs ussr). Great depression taught that: if an econ. crisis begins, it is rapidly transmitted across borders. Gov. intervention is therefore needed to correct the economy. Gov. can intervene by scal and monetary policy.