By Alain Touraine
Touraine is among the top social thinkers on the earth this present day and lots of of his books were released in English.In this ebook Touraine provides a brand new theoretical framework for figuring out the modern international. it's a large theoretical paintings which seeks to make experience of daily event firstly of the twenty first century.This is a huge new theoretical paintings via one of many best sociologists on this planet today.A nice reference ebook for these learning sociology and social concept at any point.
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Extra resources for A new paradigm for understanding today's world
World Development Report. In: Neoliberal Globalization as New Imperialism Editor: A. H. Köse, F. Şenses et al. pp. 21-42 ISBN 978-1-60021-639-8 © 2007 Nova Science Publishers, Inc. Chapter 2 THE LEVEL OF ACTIVITY IN AN ECONOMY WITH FREE CAPITAL MOBILITY Prabhat Patnaik and Vikas Rawal 1. INTRODUCTION The purpose of this paper is to argue that the “opening up” of an underdeveloped economy to free capital flows, instead of boosting its rate of growth as “neo-liberals” claim, would have the precisely opposite effect of unleashing ceteris paribus a tendency towards stagnation and greater unemployment.
This appreciation has the effect of lowering the level of domestic activity, and of increasing the level of unemployment, by shifting demand away from domestic to foreignproduced goods. When capital flows out, however, we do not have an exact reversal of the story. We do not have, beyond a point, any increase in the level of activity, since a depreciation of the exchange rate brings in its train inflationary pressures, which create economic and social instability. To prevent such a denouement, the government takes antiinflationary steps by way of cutting back on public expenditure and, in general, deflating the economy, which again adversely affect the level of activity and unemployment.
What is specific about (5) however is not just the deliberately conservative assumption that speculation always acts in a stabilizing manner, but also the implicit assumption that the expected real exchange rate by speculators and the “benchmark” real exchange rate (which is the smallest among the non-inflation-inducing ones) coincide. There is no reason whatsoever for such coincidence and in section 4 we shall explore the implications of the more likely case of divergence between the two. But for the sake of highlighting only one thing at a time let us assume this coincidence.