Global Economy Essay Example | Topics and Well Written Essays - 1000 words

Global Economy - Essay Examplesupport by the foreign Monetary is a debt relief to developing nations that result to an increased flow of direct financial investments and technology by the private sectors. Globalization is viewed as key force that would promote worldwide economic development while unrestricted regime trade serves to increase the inequality between developing and develop nations. When there is globalized trade, the developing countries are able to acquire skilled parturiency and modern technology that volition aid in economic growth by dealing with problems such as unskilled labor and poverty. Integral of International Monetary and trade regimes in supporting a globalized capitalist economy ensured that custom and toil were not confined within national borders any longer. It also private sectors to increase production since good and services had gained local and foreign market. Globalization of capitalist economy made the developed countries intimacy so-called Golden Age of Capitalism between 1953- 1973 as per capital income growth value in Europe rose from 1.3% to 4.1% while that of U.S rose from 1.8% to 2.5%. They had a spectacular economic growth performance (Jaffe 367). re-sentencing rate regimes are the main regime managed by the international monetary and world trade organization. The International Monetary Fund has classified change over rate regimes on the bases of the degree of flexibility of the arrangement or a formal or informal commitment to a given path of exchange rate into eight categories. Exchange Arrangement with No Separate Legal Tender, currency board arrangements, Conventional obdurate Pegs Arrangements, Pegged Exchange Rates within Horizontal Bands, Crawling Pegs, Exchange Rate within Crawling Bands, Managed aimless with No Predetermined Path for the Exchange and Independent Floating. This foreign exchange regime emphasizes the implications on the exchange rate regimes to the independence of monetary policy. Ho wever, monetary policy does not