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Dr Maurice Mullard Lecture 4
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TRADE – OPEN MARKET LEADS TO OVERALL FALLS IN PRICES BECAUSE OF OVERALL INCREASES IN SUPPLY OVERALL WAGE REDUCTIONS IN THE MORE COMPETITIVE SECTORS ESPECIALLY EXPORT SECTORS TECHNOLOGY – SKILLED AND UNSKILLED WORKERS
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Globalisation and geographical spaces Blocs and Power Who Gives shape and defines globalisation Financial crisis Argentina Asia Brazil the Washington Consensus The Emergence of China The New Recession 2007
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Recession started in USA sub prime mortgages but this was a trigger need to explore structural causes Fragile finance markets Capital Requirements Liquidity London and New Yorkat hub of global finance 14 banks control 90 per cent of global assets US 6 banks control 50 per cent High concentration and interconnected
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Oil OPEC Cartel decide oil output and prices control supply – oil and political leverage 1973 74 inflation crisis Primary commodities coffee cocoa coal iron less political leverage poor countries Theory of coupling and De coupling Relationship Developed Economies and Emerging Economies
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Most influential economic bloc – economy stronger than US – enlargement to 27 member states second largest GDP EU diverse and plural less cohesive Ideology – European tradition of welfare and US Market approach Euro and the dollar as future global currencies Subsidies for agriculture environment regulations Responding to Global Recession 2009 Germany dominance strait jacket of the euro Austerity in ascendance
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The European Central Bank priority of monetary policy low inflation Recession safeguarding the banks Criticisms of the Anglo US liberal model as failed model Willingness to provide subsidies
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Military power – History of Corporate America – military Industrial Complex History of US protectionist policies Irony of American democracy – political elite Weakness of US Economy 2010 Consumer of last resort Decline in net worth
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GINI INCREASED SINCE 1990S- BLAMED ON GLOBALISATION – JOBS LOSSES Unemployment 15 million in June 2009 US Bailout of Banking Sector Obama Stimulus Package Health Reforms From Falling of a Cliff to Green Shoots Decline of the US Consumer
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China Growth in 2009 8.9 per cent EU and US contracted Forecast that China would overtake US 2040 china now second largest economy Chasing primary commodities Oil food iron ore Danger of global imbalances Savings and Exports
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Pan Africa dream of independence – to military rule – fragmented and the lost continent Arab League Islam Oil and Politics
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Economy 1.4 trillion about 5 th largest economy In and out of eurozone Austerity Forecast w recession Where the growth
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