Political Science 2211E Study Guide - Fordism, Mexican Peso Crisis, Global Financial System
21 Feb 2013
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Electronic herd: global market of anonymous stock, bond and currency traders and multinational investors connected by screens and networks: consists of two basic groups: People involved in the buying and selling of stocks, bonds, and currencies around the world. Can and often do move their money around on a very short-term basis. Multinationals increasingly involved in foreign direct investment: building factories or subcontracting overseas factories to make or assemble their producing. Pre-1970s cold war system: government"s own monetary policy dominated the setting of its own interest rates, government"s own fiscal policy was the dominant instrument for stimulating growth. Lift of capital controls in 1970s: democratization of finance, technology and information, end of the cold war system and fall of wall everywhere, private sector became dominant in the global financial system, emergence of supermarkets. Supermarket = mega markets of exchanges (i. e. nyse)
