POLSCI 160 Lecture Notes - Lecture 27: International Political Economy, Progressive Alliance Of Socialists And Democrats, Export Subsidy
14 Nov 2016
School
Department
Course
Professor
Document Summary
Lec fri, 11/11/16 economics for international political economy. Prices including exchange rates, interest rates, and asset prices respond to s&d. Comparative advantage means that trade increases national income, but not all benefit from greater openness to trade. Exchange rates influence the relative prices of imports and domestically produced goods. Governments cannot have a fixed exchange rate, mobile capital, and monetary policy autonomy at the same time. Explain how supply and demand determine prices. Describe the economic effects of trade on an economy. Outline how changes in exchange rates influence an economy. List the choices governments face from the mundell-fleming trilemma. International political economy addresses the politics of transnational economic issues: development, trade, money, finance. International economic policies affect groups in society: firms, workers, consumers, and other organized interests. We must understand what the economic effects of these policies are to understand the politics of them. The equilibrium price clears the market; where s&d meet.
