ECONOMICS

International Political Economy helps us understand the rise of 'financialized' capitalism.

International Political Economy helps us understand the rise of 'financialised' capitalism.

Introduction

(IPE) international political economy is considered as the field of social science that is progressively growing as it endeavour to recognize the current and futuristic problems of international and global aspects with the help of systematic tools and some relevant theoretical. According to Joseph Schumpeter, this field of social science is focusing on the process that is known as the “creative destruction” (Clapp & Helleiner 2012).

Frequent breakdown in terms of discipline particularly multidisciplinary problems, transdisciplinary problems between economic and political aspects of the country are becoming the major aspect of the growth of international political economy. Hence, the prime objective of the IPE project is to remove the barriers that limit the process of inquiry, so that the country is able to examine the nature of problem without the interference of borders of discipline.

International political economy comprises of set of different problems, some of the most common problem includes analysis of international trade, and its political economy, international financing issues, multinational companies and others. However, several scholars are trying to broaden the scope of these problems as they are trying to reformulate IPE that would go beyond the problems of international politics and international economics (Falkner, 2011; Xing & Hersh, 2006).

International Economics and International Politics

It today's world international political economy has become the essential aspect in worlds progress because mutual dialogues, international relations of countries are some what based on IPE, and this has become a major topic of research and analysis. Further, majority of the political actions of nations evidently influence international trade and monetary flows.

Because of this, influence of nation has a direct impact on the setting, and environment that is used by leaders of nation to make political decision, and experience and young business entrepreneurs to make financial and economic decisions. Hence, it is impossible to answer the questions regarding international politics and international economics without including the above-explained mutual factors (Hara, 2006).

Discussion

Role of IPE in financial capitalism

In spite of these facts, there are certain economists and politicians that try to focus on either international economics or vice versa. Further, sometime both of these professional fails to understand the basic culture of the market, and it attributes that transforms political economy. Hence, it has also been constantly argued that the bridge or gap between the two concepts was initially transpired during the era of cold war. In this context a well-known economist and a political scientist attempted to interlink the concepts of economic and politics in their famous book “Man, the state, and War”.

However, in the period of 1970s, prescribing mutual conflict between the International Politics and International Economics was removed mainly because of occurrence of unexpected events, which simply confirmed the strong relationship between two separate fields. For instance, disastrous events like 1970s oil situations, and unexpected collapse of britton woods monitory system became the major factor in the formulation of IPE and force the ...