Question

6. Mosley (2000) article provides an important insight into the politics of international finance. Answer the following questions:

- What is it?

- How does it fit into two broader debates about globalization?

Answer 1

ANS

1 The politics of international trade discusses the influence of international financial market on government policies .It focusses on the method of how the capital markte openness allows the participants of financial markets to react dramatically to changes in government policy outcomes .This enables the government to form the market pleasing policy in agregate policy areas but retain a room too move in other areas ..It also shows the evaluatipn of  the relationship between international financial markets and government policy outcomes, with a focus on the government bond market in developed democracies.

2. It fits into two broader debates of globalisation as , globalisation was meant to be for the betterment of the developing countries .It was enhanced to make a international market more sound and viable which it does to most of the extenct but when it comes to the politics of international finance then there is another point of view which is to be kept in mind that most of the times due to interest to market holders there is seen a cross national policy divergence between industrial democracies which sometimes affects the economy adversely .Sometimes government has to frame the policy with respect to the international financial terms and which woulld hinder the growth in the long run .This tension was keenly observed between the economies of USA and India in the recent past.