TITLE

Globalization and the Failure of Economic Policy

AUTHOR(S)
Müller, Ronald E.
PUB. DATE
May 1975
SOURCE
Challenge (05775132);May/Jun75, Vol. 18 Issue 2, p57
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
Since the mid-1960's, economic policy has become increasingly ineffective, if not actually perverse. The resulting "stagflation" is a source of constant bewilderment to economists whose notions about economic behavior come straight out of the neoclassical text. But to economists who have been studying the emergence of multinational corporations as the dominant actors in the American political economy, the current era of economic instability is not incomprehensible. The globalization of the world's largest industrial and financial enterprises represents a structural transformation as fundamental as the post-Civil War development of the small local firm into the large, nationwide corporation. Because global corporations operate differently from merely national ones, this transformation has invalidated the behavioral assumptions of orthodox theory. Predictably, policies based on those assumptions tend to misfire repeatedly, particularly as the multinationals increase their dominant position in both the national and international economy.
ACCESSION #
6152076

 

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