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Transnational Social Policies: The Development Challenges of Globalization - Essay Example

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An essay "Transnational Social Policies: The Development Challenges of Globalization" reports that for the most part, history can teach us what worked and what didn’t work in the past. Policymakers would be smart not to repeat economic policies that have had negative results…
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Transnational Social Policies: The Development Challenges of Globalization
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Transnational Social Policies: The Development Challenges of Globalization

Download file to see previous pages... One goal of many policymakers is economic growth. Rather than try to make policy without help, the policymaker would be wise to use models of economic growth that are available. The choice of models greatly depends on the circumstances at hand. For example, creating the policy for a third world country based upon an economic growth model better suited to a technologically developed country would be a big mistake. Research of classical economic models would be needed. Also, these models can (and are) be expressed mathematically. Economic growth can be measured and predicted by changing factors used in these models/formulas. Policymakers would be wise to lend an ear to the debates between Keynesian economists and classical economists. These economists may be able to put new modern factors into old models and calculate a positive outcome. The debate between economists can provide ideas about how to create successful policies based on the old models (while taking into consideration the new factors). Policymakers could make great use of formulas (mathematical representations of models) to calculate possible outcomes. It is helpful to review the characteristics of Keynesian economics and classical economics. The Keynesian economic model is used to track changes in aggregate demand, price level, and gross domestic product1: C=consumption, I=investment, G=government spending, X=exports, and M=imports. GDP= gross domestic product. The Keynesian theory asserts that the expenditure of the buyer is the income of the seller. Money is exchanged for something that the buyer values2. The Keynesian model allows for disequilibrium in the labor markets where aggregate employment is dependent upon aggregate demand3. There are several Keynesian models. Joan Robinson’s model focuses on the assumption that the economy is running at full capacity. ...Download file to see next pagesRead More
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