Capitalism, Not Globalism: Capital Mobility, Central Bank Independence, and the Political Control of the Economy

Capitalism, Not Globalism: Capital Mobility, Central Bank Independence, and the Political Control of the Economy

by William Roberts Clark
     
 

ISBN-10: 0472112937

ISBN-13: 9780472112937

Pub. Date: 06/06/2003

Publisher: University of Michigan Press


Capitalism, Not Globalism shows that, while much has been made of recent changes in the international economy, the mechanisms by which politicians control the economy have not changed throughout the postwar period. Challenging both traditional and revisionist globalization theorists, William Roberts Clark argues that increased financial integration has led to…  See more details below

Overview


Capitalism, Not Globalism shows that, while much has been made of recent changes in the international economy, the mechanisms by which politicians control the economy have not changed throughout the postwar period. Challenging both traditional and revisionist globalization theorists, William Roberts Clark argues that increased financial integration has led to neither a widening nor a narrowing of partisan differences in macroeconomic polices or outcomes. Rather, he shows that the absence of partisan differences in macroeconomic policy is a long-standing feature of democratic capitalist societies that can be traced to politicians' attempts to use the economy to help them survive in office.

Changes in the structural landscape such as increased capital mobility and central bank independence do not necessarily diminish the ability of politicians to control the economy, but they do shape the strategies they use to do so. In a world of highly mobile capital, politicians manipulate monetary policy to create macroeconomic expansions prior to elections only if the exchange rate is flexible and the central bank is subservient. But they use fiscal policy to induce political business cycles when the exchange rate is fixed or the central bank is independent.

William Roberts Clark is Assistant Professor, Department of Politics, New York University.

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Product Details

ISBN-13:
9780472112937
Publisher:
University of Michigan Press
Publication date:
06/06/2003
Series:
Michigan Studies in International Political Economy Series
Pages:
224
Product dimensions:
6.00(w) x 9.48(h) x 0.90(d)

Table of Contents

Acknowledgments
Ch. 1Introduction1
Ch. 2The Structural Context of Macroeconomic Policy Choice13
Ch. 3Partisanship and Fiscal and Monetary Policy41
Ch. 4Elections and Fiscal and Monetary Policy85
Ch. 5Partisan Differences and Macroeconomic Outcomes105
Ch. 6Elections and Macroeconomic Outcomes141
Ch. 7Conclusion169
App. ADerivation of Proposition 1177
Notes179
References193
Index205

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