scholarly journals The Influence of Internal Contradictions in the Us Economy on Global Financialization and the Expansion of Fictitious Capital

2021 ◽  
Vol 25 (2) ◽  
pp. 6-34
Author(s):  
D. A. Dinets ◽  
R. A. Kamaev
Keyword(s):  
Financial Markets ◽  
Global Economy ◽  
Capital Investment ◽  
Balance Sheet ◽  
The United States ◽  
Market Liquidity ◽  
Financial Flows ◽  
Us Economy ◽  
Fictitious Capital ◽  
The Us

The financialization genesis of the global economy centered in the United States is on the bifurcation point now— a fictive capital’ expansion is damaging with the social capital regeneration mechanism disaster. The method of identifying and estimating the fictive capital’ extension is absent for now. The fictive capital exists as a metaphor on the science papers but not as an institutional basis of the capital flows directions. The paper aims to update the configuration of the global financial system, its dependence on the performance of US corporations and banks; to identify the sources of vulnerability of world finance and global liquidity from the fictitious capital of American financial markets. The methodology is theoretical pattern’ of financial capital movements and its real statistical market indicators comparison. The empirical base is statistical data about the financial flows and financial results especially about the US as a global financial center. Based on the results the authors have revealed an origin of fictive capital on the US bank sector by the justification for the conclusion of liquidity above the profitable as the purpose of financial operations. This conclusion is confirmed with the scale of off-balance sheet transactions of banks. Besides the regression between the prices of derivative’ basis assets and stock indexes has been shown. Also, the market capitalization of American companies is not sensitive to change in market liquidity indicators. The authors concluded that global financialization is supported by significant internal contradictions in the US economy. The source of contradictions is the financial mechanism for withdrawing liquidity from the sphere of production and circulation into the sphere of financial markets. Capital investment using instruments of the US financial market entails the threat of losing their liquidity. Forecasting the dynamics of the global economy without taking into account the role of fictitious capital, which is emerging in the American financial markets, leads to global vulnerability and may cause the next financial crisis.

US entrepreneurship may be on the rebound

2015 ◽  
Keyword(s):  
Global Economy ◽  
The United States ◽  
Content Type ◽  
Firm Creation ◽  
Us Economy ◽  
The Us ◽  
Business Dynamics ◽  
New Firm ◽  
New Firm Creation ◽  
Start Ups

Subject Entrepreneurialism and dynamism in the US economy. Significance Entrepreneurship is a key feature of the US economy, and traditionally drives its innovation and growth. However, the Census Bureau's most recent report on business dynamics has shown a depressed state of entrepreneurship in the United States. New firm creation is down significantly compared to before the 2007-09 recession. Trends since the 1970s indicate that this may be a structural, rather than simply cyclical, issue. Impacts Rising voluntary job-quit rates may presage growth in new firm creation. A slowing global economy may blunt the edge that large firms receive from their ties to overseas market. An emphasis on customisation and service in manufacturing could permit easier entry for start-ups.

US financial flows are as important to growth as trade

2018 ◽  
Keyword(s):  
United States ◽  
Current Account ◽  
Trade Deficit ◽  
The United States ◽  
Foreign Economic Policy ◽  
Financial Flows ◽  
Content Type ◽  
Us Economy ◽  
The Us ◽  
International Transactions

Subject Exploring the US current account beyond goods trade. Significance The US administration is focusing on the goods trade deficit to measure how well the country is doing in international transactions and to determine foreign economic policy. However, this ignores the many other transactions that cross the nation’s borders. For example, the United States is the world’s largest exporter of services. Moreover, trade is just one part of the current account, which also includes investment income and labour compensation. Financial flows are also important, dominating advanced countries international transactions since the 1980s and driving US exchange rates, trade balances and national savings. Impacts A permanently higher dollar due to the desire of investors to buy US assets will keep the US goods balance in deficit despite trade policy. The US economy is services-driven -- trade in services will grow as a share of US international transactions. An undue focus on manufacturing and goods trade places the US economy at risk of higher costs and slower productivity gains and GDP growth. To meet and diversify demand to invest in the United States, new safe assets including infrastructure bonds may emerge to fund projects.

scholarly journals Global inequality and the Trump administration

2019 ◽  
Vol 45 (3) ◽  
pp. 502-510 ◽  
Author(s):  
Frederick W. Mayer ◽  
Nicola Phillips
Keyword(s):  
United States ◽  
Environmental Protection ◽  
Global Economy ◽  
The United States ◽  
Global Inequality ◽  
Welfare Provision ◽  
Us Economy ◽  
The Us ◽  
The World ◽  
Trump Administration

AbstractSince US President Donald J. Trump took office in January 2017, the future of the global economy has looked distinctly uncertain. This is not because a process of clear and purposeful change can be said to be underway. Instead, it is because of a pattern of piecemeal, inconsistent and contradictory fragments of policy, both domestic and international in orientation, in the arenas of trade, taxation, business relations, finance and banking, social and welfare provision, immigration, and environmental protection, whose cumulative significance remains unclear. The modest task of this essay is therefore to sketch the contours, patterns, inconsistencies and confusions presented by the Trump administration's approach to shaping the US economy and, by extension, the global economic order, and on that basis to offer an interpretation of its emerging implications for inequality both within the United States and across the world.

Ocena antykryzysowej polityki gospodarczej Stanów Zjednoczonych i wybranych państw członkowskich Unii Europejskiej w latach 2005–2014

2016 ◽  
pp. 26-46
Author(s):  
Marcin Jan Flotyński
Keyword(s):  
United States ◽  
European Union ◽  
Financial Markets ◽  
Global Economy ◽  
Global Financial Crisis ◽  
The United States ◽  
The European Union ◽  
High Volatility ◽  
The Global Financial Crisis ◽  
Domestic Products

The global financial crisis in 2007–2009 began a period of high volatility on the financial markets. Specifically, it caused an increased amplitude of fluctuations of the level of gross domestic products, the level of investment and consumption and exchange rates in particular countries. To address the adverse market circumstances, governments and central banks took actions in order to bolster the weakening global economy. The aim of this article is to present the anti-crisis actions in the United States and selected member states of the European Union, including Poland, and an assessment of their efficiency. The analysis conducted indicates that generally the actions taken in the United States in response to the crisis were faster and more adequate to the existing circumstances than in the European Union.

Disruptive Soft Law and Post-Crisis US Reform

2018 ◽  
Author(s):  
Abraham L. Newman ◽  
Elliot Posner
Keyword(s):  
Financial Markets ◽  
Great Recession ◽  
Regulatory Reform ◽  
The United States ◽  
Soft Law ◽  
Long Term Effects ◽  
The Great Recession ◽  
The Us ◽  
International Interaction

Chapter 6 examines the long-term effects of international soft law on policy in the United States since 2008. The extent and type of post-crisis US cooperation with foreign jurisdictions have varied considerably with far-reaching ramifications for international financial markets. Focusing on the international interaction of reforms in banking and derivatives, the chapter uses the book’s approach to understand US regulation in the wake of the Great Recession. The authors attribute seemingly random variation in the US relationship to foreign regulation and markets to differences in pre-crisis international soft law. Here, the existence (or absence) of robust soft law and standard-creating institutions determines the resources available to policy entrepreneurs as well as their orientation and attitudes toward international cooperation. Soft law plays a central role in the evolution of US regulatory reform and its interface with the rest of the world.

Military Subsidization of Human Capital and Gender Stratification in the US Economy

2021 ◽  
pp. 048661342098262
Author(s):  
Tyler Saxon
Keyword(s):  
Human Capital ◽  
The United States ◽  
Jel Classification ◽  
Access To Higher Education ◽  
Gender Stratification ◽  
Us Economy ◽  
The Us ◽  
And Gender ◽  
Capital Development ◽  
The Military

In the United States, the military is the primary channel through which many are able to obtain supports traditionally provided by the welfare state, such as access to higher education, job training, employment, health care, and so on. However, due to the nature of the military as a highly gendered institution, these social welfare functions are not as accessible for women as they are for men. This amounts to a highly gender-biased state spending pattern that subsidizes substantially more human capital development for men than for women, effectively reinforcing women’s subordinate status in the US economy. JEL classification: B54, B52, Z13

Rethinking U.S. National Security after Covid19

2020 ◽  
Vol 26 (3) ◽  
Author(s):  
Linda J. Bilmes
Keyword(s):  
Climate Change ◽  
United States ◽  
National Security ◽  
The United States ◽  
Emerging Diseases ◽  
Defense Spending ◽  
Federal Spending ◽  
Us Economy ◽  
The Us ◽  
The Military

AbstractThe United States has traditionally defined national security in the context of military threats and addressed them through military spending. This article considers whether the United States will rethink this mindset following the disruption of the Covid19 pandemic, during which a non-military actor has inflicted widespread harm. The author argues that the US will not redefine national security explicitly due to the importance of the military in the US economy and the bipartisan trend toward growing the military budget since 2001. However, the pandemic has opened the floodgates with respect to federal spending. This shift will enable the next administration to allocate greater resources to non-military threats such as climate change and emerging diseases, even as it continues to increase defense spending to address traditionally defined military threats such as hypersonics and cyberterrorism.

What's new in the "new" US course towards the DPRK?

2021 ◽  
pp. 16
Author(s):  
Alexander Zhebin
Keyword(s):  
North Korea ◽  
Large Scale ◽  
The United States ◽  
Negotiation Process ◽  
Republic Of Korea ◽  
Us Economy ◽  
The Us ◽  
Nuclear Problem ◽  
The Republic ◽  
Taiwan Straits

The article analyzes the prospects for US-North Korean and inter-Korean relations, taking into account the completed policy review of the new US administration towards the Democratic People's Republic of Korea (DPRK), as well as the results of the President of the Republic of Korea Moon Jae-in’s trip to Washington in May 2021 and his talks with US President Joe Biden. It is concluded that the “new" course proposed by the United States in relation to the DPRK will not lead to a solution to the nuclear problem of the Korean Peninsula and will interfere with the normalization of inter-Korean relations. During his visit to the US President Moon failed to obtain the US consent on ROK more “independent policy” toward North Korea. In spite of lavish investments into US economy and other concessions, Seoul was forced to promise to coordinate his approaches to the DPRK with US and Japan and support US position on Taiwan straits and South China Sea. The author argues that in the current conditions, the introduction of a regime of arms limitation and arms control in Korea should be a necessary stage on the way to complete denuclearization of the peninsula. The transition to a such method of the settlement of the nuclear problem could lead to the resumption of the negotiation process, mutual concessions, including reductions in the level of military-political confrontation, partial or large-scale lifting of economic sanctions in exchange for North Korea's restrictions of its nuclear weapon and missile systems.

United States and Its Challenge to Multilateralism in the Global Economy

2018 ◽  
Vol 74 (4) ◽  
pp. 402-419
Author(s):  
Krishnakumar S.
Keyword(s):  
United States ◽  
Global Economy ◽  
World Economy ◽  
Foreign Exchange Market ◽  
Bilateral Trade ◽  
Developing Economies ◽  
The United States ◽  
The Us ◽  
The World ◽  
Merchandise Trade

With Donald Trump as President of United States, multilateralism in the world economy is facing an unprecedented challenge. The international economic institutions that have evolved since the fifties are increasingly under the risk of being undermined. With the growing assertion of the emerging and developing economies in the international fora, United States is increasingly sceptical of its ability to maneuvre such institutions to suit its own purpose. This is particularly true with respect to WTO, based on “one country one vote” system. The tariff rate hikes initiated by the leader country in the recent past pose a serious challenge to the multilateral trading system. The paper tries to undertake a critical overview of the US pre-occupation of targeting economies on the basis of the bilateral merchandise trade surpluses of countries, through the trade legislations like Omnibus Act and Trade Facilitation Act. These legislations not only ignore the growing share of the United States in the growing invisibles trade in the world economy, but also read too much into the bilateral trade surpluses of economies with United States and the intervention done by them in the foreign exchange market.

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