Unformatted text preview: Finance and capital flows: Dunaway looks at the international sources of the current financial crisis, examining a set of long-standing imbalances that existed particularly within the US economy. This article examines how the various economic policies pursued by states are inter-related, and how interdependency at the systemic process level impacts domestic economic policy and economic performance. For example, Dunaway examines a set of interdependencies between the developed and the developing world and how this played into the current financial crisis. In the US, for example, we see a consumption driven economic growth, with a low national savings rate, and a current account deficit (coupled with a capital account surplus, leading the US government to “borrow” from the world economy through the sale of government securities). In the developing world, particularly countries like China, India, and the OPEC states (with the high prices on oil), we see significant economic growth and a subsequent higher national savings...
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- Fall '11
- Economics, current financial crisis, Dunaway