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Unformatted text preview: The World Political Economy and the Crisis of Embedded Liberalism- the political economies of modern Western European countries are connected on an internation- al level- what happens in one states economy transcends its borders and effects another states- Keohane argues that the common forces that come from an international community/ world economy - embedded liberalism: developed by John Ruggie, it describes the popular, global economic trends that occured after WWII to the 1970s- political economic choices favoured: 1) the extensiveness of the welfare state (state, not the market, reallocates resources to individuals, firms, etc) 2) degree of liberalism or protectionism in foreign trade and international monetary policy- at this time European societies entrusted the state with a large role in liberalist economic policies and the maintenance of a welfare state (developing the living standards of its citizens)- Role of the State:- laissez-faire system (liberal foreign economic policies, little state intervention and mar-...
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