PSC 116 Lecture Notes - Lecture 7: International Political Economy, Economic Determinism, Free Market
Document Summary
The two-way relationship between int"l politics and int"l economics: also known as ipe. Link between politics and economics run in both directions: int"l economics events = political consequences, political decisions = economic consequences. Ipe examines questions concerning the movement of goods, money, people and ideas across borders: state control over these processes is declining, trade = powerful incentives for cooperation. Amount of cross-border movement continues to rapidly increase. Ipe id divided into two different approaches to answer these questions: economic theories: explanations that focus on the type and intensity of the interests of the actors, economic determinism. Traditionally, economic models were based on the assumption of operating in a free market. Economics and politics are deeply intertwined and can never be completely separated from one another: economics is fundamentally shaped by political decisions, example: laissez-faire economics of 19th century. Britain: laissez-faire economics: let go ; economy with reduced gov"t restrictions on trade and regulation.
