ILRIC 635 Lecture 8

ILRIC 635 Lecture 8 - ILRIC 635 Lecture 8 Beginning a "new...

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ILRIC 635 Lecture 8 Beginning a “new course” – from income distribution to globalization Definitions of Globalization: - Increased foreign trade and/or increased foreign investment - Access to whatever you want to know in the world at the touch of a button - See handout: Stiglitz, Wolf, Friedman, Yale Global Outline World Bank – development bank - Coverage for the entire world (there exist banks with regional coverage) - Not an ordinary profit maximizing institution o Make loans to developing countries for the purpose of development Ordinary loans – to the richer of developing countries Made at fair market value Concessional loans – to the poorer of developing countries Made at 1% interest and has a 10 year grace period - Biggest penalty is to say “you cannot borrow from us anymore” International Monetary Fund - World financial system is not run by a central force o Each country’s financial system is run by their own central bank (Fed) o Some countries peg their currency to other nations
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This note was uploaded on 04/14/2008 for the course ILRIC 4350 taught by Professor Fieldsg during the Spring '08 term at Cornell.

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ILRIC 635 Lecture 8 - ILRIC 635 Lecture 8 Beginning a "new...

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