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International Economics

Introduction
The process of globalization appeared to be permanently growing today; it is significant to be aware of what its major factors are and how they impact the development of the worlds’ economy.
The key filed of financial globalization is the international economic framework (economy), i.e. international marketing; such processes as, for instance, the exchange and consumption provided by the companies in their internal economies and in the global market. As a consequence of the financial globalization, the capital obtained the considerable flexibility, looking for the most appropriate and beneficial possibilities. The process of financial globalization has increased the Continue reading...

Government is the strongest agent among all the agents in an economy with its fiscal and regulation power. In the capitalist economies, the government intervention is not appreciated because the intervention to the economy might cause inefficiency. However, the capitalist market mechanism might create inefficiency that might require intervention. Thus, the government intervention to the markets is not desired but sometimes necessary.
The economy management consists of two parts in almost every economy: monetary policy and fiscal policies. Central banks are responsible for developing monetary policies to respond the changes in the money markets while governments can develop fiscal Continue reading...

Deficit spending refers to circumstances where the expenditure outstrips income. As a form of a state’s fiscal policy, deficit spending refers to situations where the government spending is more than the income it receives in the form of taxes. Cyclical deficit as a form of fiscal policy occurs where government operate surplus budget during times of economic booms to compensate for budget deficits during economic recessions. In contrast, structural deficits occur where the government expenditure always outstrips income.
Deficit spending as a government fiscal policy is mired in controversy due to the differing views advanced by economists. Under Continue reading...