assess the impact of globilisation on the global distribution of income and wealth.
Is this a bloody essay question?
briefly without revision:
- generally the level of income/wealth inequality has increased in the global economy. THis is indicated by the gradually increasing gini coefficient of many economies such as US & China.
- The global distribution of income has always been poor, with 20% richest countries sharing up to 70% of all income.
- The gap between global rich and poor is closing in, as advanced nations experience more volatility and slower growth due to the process of globalisation, while other eocnomies especially emerging ones are catching up
Using your own Knowledge of Fiscal AND monetary policy , explain why these policie may be ineffective during a period of stagflation. suggest appropriate actions a government can take in such a situation. please answer
-Stagflation is a period where unemployment rate and inflation rate rises simultaneously, in the longterm.
- Fiscal and monetary policy are macroeconomic policies that influence demand, and has a short-term effect, which may be inadequate in address the long term problem of stagflation
- In the short-term, implementation of expansionary or contractionary macro policy may reduce unemployment or inflation, but due to the inverse relationship between the 2 policy, reducing one in the short term lead to increase of another.
- being longterm, stagflation is likely to be a structural problem
- Labour market policies and programs to increase skills of workforce to reduce structural unemployment, job services network to reduce frictional unemployment thus NAIRU
- Address capacity constraints through implementation of microeconomic policies and discretionary spending measures on infrastructure to reduce long-term inflation due to supply inflation
please dont take my answer for granted, im not ready for eco yet, also any1 want to criticise my response!;D please do
