NEW YORK: Start with the obvious: we live in a global economy. Let us be clear about what that means. A global economy includes not only the free movement of goods and services but, more importantly, the free movement of ideas and capital (everything from direct investments to financial transactions). Though both gained in importance since WW II’s end, globalization of financial markets accelerated in recent years so that movements in exchange rates, interest rates, and stock prices in various countries are intimately interconnected. Indeed, the character of the financial markets changed out of all recognition during the 40 years that I have worked in them. So the global economy should really be thought of as the global capitalist system.
NEW YORK: Start with the obvious: we live in a global economy. Let us be clear about what that means. A global economy includes not only the free movement of goods and services but, more importantly, the free movement of ideas and capital (everything from direct investments to financial transactions). Though both gained in importance since WW II’s end, globalization of financial markets accelerated in recent years so that movements in exchange rates, interest rates, and stock prices in various countries are intimately interconnected. Indeed, the character of the financial markets changed out of all recognition during the 40 years that I have worked in them. So the global economy should really be thought of as the global capitalist system.