POL208Y1 Lecture Notes - Government-Sponsored Enterprise, Mercantilism, Planet Finance
9 Jun 2013
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Document Summary
Since 80s new financial instruments were created, most of these financial instruments were unregulated, in early 90s attempts were made to regulate that type of market. Financial world was taking an even bigger place in western economy, 1947 total value of financial sector to usa gdp was 2%, in 2007 it had became. 8. 5%financial market multiplied by 4 in regard to us gdp. Collapse of financial factor quickly spread, world trade decreasedwhat happens in one market affects others, interdependence. Lower transportation costs, travelling around the world is cheap, communication costs has also decrease reflects globalization. China has attempted to shape the rules of the game in its own way, notably by having the definition of copyrights and trying to play with the value of its currency. Modern states need to answer to financial sector. Regime of free capitalization intertwined with state power.
