Global world economy

Wednesday, May 18, 2011

In the first place, the model presented in this paper is basically restricted to the relationships in a closed economy. In the present condition of a global world economy it may seem absurd to write anything substantial on a single country’s domestic economic arrangements without giving the same degree of attention to the implications for that country’s external economic and financial relations with the rest of the world. But we may refer to the great example of Keynes’s revolutionary book The General Theory which concentrated on the problems in a closed economy, leaving much subsequent discussion and research to determine their international implications. In my blog book does, however, very briefly sketch the direction in which the international implications of the present proposals would need to be considered.