Policy Proposal

Policy Proposal

In the US today explain in details why you would recommend the expenditure changing policy mix to achieve internal and external balance?

In the United States of America, I would recommend the expenditure changing policy mix to achieve the internal and external balance, in order to deal with the issue of the financial crisis that the country is facing. American financial capitalism has abruptly ended by touching its limits. Originally part of the falling house, the crisis spread to the entire U.S. financial system and the real economy. The recession, already severe in 2008, will continue. The stimulus package the Obama administration, combined with an all-out monetary policy, designed to offset the fall in private spending and stop the spiral of depression. But he is not sure that's enough. On a structural level, this crisis has the merit of revealing the excesses of a system considered by economist's standard, both as the best reflection of the market economy and a universal model, superior to others. The reality is otherwise. The success of this model of capitalism was based on economic foundations and institutions that prove aberrant, including its strongest advocates. Thus, the crisis imposed by scale, to rethink how to organize economic coherence. Beyond the challenge to the dominant economic philosophy, it analyzes the future of the global economic order dominated by U.S. financial industry and its powerful (Acharya, Richardson, 2009).

As part of its geopolitical synergy, the site diploweb is pleased to present a paper published by the Chamber of Commerce and Industry of Paris in the journal Accomex. Analysis and reflection on foreign markets, No. 85, January / February 2009: U.S. Do they really can?

Specificities and role of the U.S. financial industry

The A SPHERE Financial has always been continuous attention from federal authorities. In fact, between 1980 and 1999, whatever the government, the sector of “banking and finance” has been liberalized. The finance industry now represents 20% of U.S. GDP, as much as the rest of service activities. This process was synchronized with the opening and deregulation of international capital markets. This sector has represented a major turnaround of the United States in global competition. It has become highly strategic. Interventions of the federal state have created a true "competitive advantage" behind the U.S. supremacy in this "global industry" like no other. Located upstream of the entire production system, it irrigates the whole economy. Control the sources of financing the economy is a significant privilege in the era of open international capital markets. Thus, one must admit the insight and consistency of U.S. strategic choice in the matter. Despite attempts displayed to better control international finance after the 2001 attacks, we cannot say that real progress has been achieved. Likewise, when the financial crisis of the Internet in the early 21st century, and scandals Financial Enron WorldCom, etc.., the administration declined to violate the interests of its financial industry. Despite the crises, scandals and excesses, any intervention has been forbidden. In 2002, the Bush administration's response consisted of moralizing ...