By Robert Z. Lawrence
In this capstone quantity within the INE sequence, the authors evaluation the turning out to be strain for deeper overseas integration, discover the strengths and weaknesses of different techniques to facing those pressures, and current concrete proposals to aid in attaining a world group that would stability openness, range, and solidarity. A quantity of Brookings' Integrating nationwide Economies sequence
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Additional info for A vision for the world economy: openness, diversity, and cohesion
S. S. government. Non-governmental organizations have become increasingly important substitutes and complements for official aid and assistance. The revolution in communications is best captured by the revolution in news broadcasting as the cable news network CNN links the world, instantaneously bringing viewers into contact with crises in other parts of the world, sometimes at the same time as, or even before, such news reaches their governments. Public opinion responding to such news becomes an important source of pressure on government action.
Geopolitical concerns and economic interests led the United States to promote a multilateral world economic system based on open trade. This approach succeeded spectacularly. Europe and Japan assumed important global roles. The Soviet empire first languished and then collapsed. European integration paralleled these worldwide trends. After western Europeans failed at creating a European Defense Community in the 1950s, they used economic integration for both economic and political purposes, thereby increasing their prosperity and creating lasting bonds among countries that have often been at war with one another.
But it gave nations considerable latitude in implementing domestic macroeconomic policies and did not try to coordinate international macroeconomic policies. When it came to exchange rate changes, the Fund was often informed rather than consulted. When the barriers at nations' borders were high, governments and citizens could sharply differentiate international policies from domestic policies. International policies dealt with at-the-border barrierstariffs, quotas, exchange rates. Domestic policies covered everything within a nation's borderscompetition and antitrust rules, corporate governance, product standards, worker safety, regulation and supervision of financial institutions, environmental protection, tax codes, monetary and fiscal policies.