Lecture 1

Douglas North

Economy is a theory of choice

-one way to study how people make decisions

Politics:

Politics is about ''who gets what, when and how''

Harold Laswell

 Robbins:

two categories of economics

Positive: Economic analysis: price value exchange-> how things are right now, how prices change, how currencies change-> do analysis how they are

Normative: Political economy: More about how things should be, what kind of tax rates should, minimum wage. Focus on things as they are. call economists why inflation is so high, call economist. ideas value judgements policy 

-economistic models probabilistic

Friedman:

-Potivie and normative can't be separated.

Ex minimum wages.same aim but normative consideration lead to different means.

 

-1.Donald Trump, conservative ideas come up--> China and other developing countries getting ahead.

2.Protectionism.  Protecting own domestic economy to increase internal demand. Fear of losing balance. 

3.Automatisation, digitalization--> conservative--> people don't understand. 

-->Permanent jobs to part-time jobs. 

-->pecialized jobs, loss of traditional jobs. 

-->Change of working routines. 

-Digitalization 

 

2030

-More open markets, new ideas overrule. Change of generation. two generations using and living in the Internet

-Not stable, Oil supply problems--> Potential for world economic risks

-EU more specific regarding  in handling crises, more integrated monetary Union

-China world leader in markets, Developing countries in better market positions-->automatization of manufacturing

-The World more interconnected

 

-uncertainty (unknown unknown) and risk (knownunknown)   are not the same things

 European Commission

White Paper

1.Carrying On

2.nothing but single market

3. Those who want more, do more

4.Doing less more efficiently, not as much structural funds as today

 

Structural fund definition: Definition of EU structural funds. This is the EU's flagship development programme which is designed to narrow the gap between the rich and poor parts of Europe. ... The majority of that spending is allocated to three funds: the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the Cohesion fund ...by Financial times Lexicob

World economic slowing down after a recession. Structural problems or ..jakso....? 

TTIP Transatlantic trade investment Partnership.

 

 

 

Three main institutions

IMF  Financial assistance

World Bank Development assistance

Wto trade policy regulation and negotiation  

 

Noodle Bowl map-- reflection in universal agreements aren't succeeded

WTO not successful 164 member states each have one vote. IMF votes based on investments.