Had highest life expectancy high education rate high

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Had highest life expectancy, high education rate, high equality, and largest state pension fund6However, this institution could not have worked in BritainEgalitarianism is prized goal of policy in Japan
English individualism made people too cynical to game the system (too selfish, greedy)10Britain was the opposite:1National insurance became state handouts and confiscatory taxation2Removed incentives that a capitalist economy could not function without11The backlash against welfare started in Chile1Minister of labour allowed workers to opt out of state pension system and choose instead a fundmanaged by a private company2Success as welfare reforms were responsible for half of the decline of total government expenditure12American healthcare is almost entirely provided by the private sector, and is far from cheap13Welfare state is not prepared for the Baby Boomer generation to retire and its strain on healthcare andpensions14Other country where the problem of aging population has serious economic implications: japan1Life expectancy was so high that it has provided the world's oldest societyHedging15Origins of hedging are agricultural16 Afutures contract allows farmers to protect themselves by committing a merchant to buy his crop when itcomes to the market at a price agreed when the seeds are planted17First forms of protection were forward contracts; true futures contract could be tradable18Chicago Product Exchange in 1874 created a permanent futures exchange19Pure hedge eliminates price risk entirely, require a speculator as a counter-party to take on risk201970s: futures could be issued for currencies and interest rates211982: futures contracts on stock markets were possible22Derivatives today are custom made and sold over the counter23Financial revolution divided world into two, those who are hedged and those that are not1Need money to be hedged2Only big corporations can afford to be hedgedGlobalization1Problem with overseas investment (emerging markets) is that it is hard for investors to understand what aforeign government of manager is doing2If foreign trading partner decided to default, very little you can do1Solution to this problem in the first era of globalization was to impose European rule3China fucked up between the 1700s and 1970s1Missed out on the conquest of the Americas and the conversion of islands in the Caribbean into sugarproducing colonies to boost agricultural systems2Missed out on the proximity of coalfields to locations well suited for industrial development3Fewer incentives to develop commercial bills, bonds, equities4When China first rebelled against the opium trade, they were met with the might of the British Empire1Resulted in the Treaty of Nanking that allowed Britain free rein to the opium trade2Drug addiction exploded5First financial globalization saw a huge amount of British capital going overseas1British investors were attracted to foreign markets b/c of the rise of British imperial power2Imposition of British rule amounted to a no default guarantee b/c original settlers had no autonomy6

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Term
Fall
Professor
jeffreyvacante
Tags
History, Monetary Policy, Capitalism, The Wealth of Nations, Joint stock company

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