The international economic system structures the prospects for continued economic development for all states. There is a debate within the literature on which economic perspective or approach best explains the workings of the international economic system and provides prescriptions for development. Pick the perspective you believe provides the best understanding of the current economic system and explain the key assumptions, strengths and drawbacks of the approach. In your opinion what are the 2 key policy prescriptions from your selected approach that can help Third World countries achieve development?
3pages double space.
Thank you© BrainMass Inc. brainmass.com October 10, 2019, 3:34 am ad1c9bdddf
Hi and thank you for using Brainmass. The solution below should get you started. In this particular problem, you are being asked to choose a perspective and explain why you think its best. This solution shows you how. Since you have not provided the economic perspectives discussed in your class, I have made some assumptions. If you need clarification just let me know via the feedback section and I'll try to explain things further. Good luck.
OTA 105878/Xenia Jones
When we talk of economic perspectives, we are referring to economic theories as ways of looking, understanding and viewing the economic system. There are host of economic perspectives/schools/theories that can be used. We now live in a global economy. The US, being the world's most powerful economy has a direct economic effect to global development. As proof of this, the subprime mortgage crash of 2007 has directly affected economies worldwide and has also led to the breakdown of economies with direct or referential involvement via their financial facilities into the American market. In Europe they include Greece, Ireland, Spain, Italy and Portugal. In the case of Greece, without German, French and IMF bail-outs, the country would be in default. As such it is still struggling to recover with high unemployment and a stagnant market. The US on the other hand had been struggling of late. It seems the recession pangs are still there with high unemployment as well as difficulties in job creation. The current administration had been struggling with the issue as S&P had of late demoted the country's rating from A+ to A-. While politics might have caused it, the real economic truth is that the US market is struggling to recover to pre-recession levels of employment and cash flow. Economics is all about supply and demand and economic perspectives seek to answer the following questions (FRBS, 2011):
â?¢ How do we decide what to produce with our limited resources?
â?¢ How do we ensure stable prices and full employment of our resources?
â?¢ How do we provide a rising standard of living both for ourselves and for future generations?
The Keynesian Perspective
The current ...
The solution provides insight, information and advise on the topic of economic perspectives to help the student answer
the listed question (see above).