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Editorial Rating

8

Qualities

  • Innovative

Recommendation

The United Kingdom’s vote to leave the European Union appears to be a vote against globalization. The neoliberal economic policies that prescribe open markets and fiscal austerity may have contributed to that backlash. In this informative research that calls for a more balanced approach to neoliberalism, economists Jonathan D. Ostry, Prakash Loungani and Davide Furceri of the International Monetary Fund find that the free flow of global capital, among other neoliberal policies, has been a mixed blessing. getAbstract recommends this thought-provoking report to policy makers, executives, economists and investors looking for another perspective on globalization.

Take-Aways

  • Neoliberal economic policies call for the free flow of capital worldwide and a reduced role for government in markets.
  • Such policies have led to technology investments in the developing world and to a drop in global poverty levels.
  • But unfettered financial flows have also led to crises and income inequality.

About the Authors

Jonathan D. Ostry, Prakash Loungani and Davide Furceri are economists at the International Monetary Fund.