Global interdependence weakened national economic control and Keynesian policy

Evidence

There has undoubtedly taken place a major expansion of global interdependence in the division of labour since the Second World War. This has helped to bring about shifts in the worldwide distribution of production, including the deindustrialisation of some regions in the developed countries and the emergence of the “Newly Industrialising Countries” in the Third World. It has also undoubtedly served to reduce the internal economic hegemony of many states, particularly those with a high level of industrialisation. It is more difficult for the capitalist countries to manage their economies than formerly was the case, given accelerating global economic interdependence. This is almost certainly one of the major reasons for the declining impact of Keynesian economic policies, as applied at the level of the national economy, in current times. — Anthony Giddens, The Consequences of Modernity, 188

Categorization

• XREF: connects to: Monetarism displaced Keynesianism through a staged diffusion across elite institutions; A single currency without fiscal federalism increases divergence between member states — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 347; Foreign-backed monetary systems subordinate a state to that foreign country. — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 369 (+9 more)

Related

• Monetary sovereignty is a precondition for capital accumulation and full employment (similarity 0.86)
• Ideologically varied states converged on Keynesian welfare management. (similarity 0.83)
• Fordist-Keynesian capitalism expanded globally to absorb de-colonized nations (similarity 0.79)
• Global finance has escaped the collective control of advanced capitalist states. (similarity 0.79)

Broader Connections

• Monetarism displaced Keynesianism through a staged diffusion across elite institutions #responds-to (0.50)
• A single currency without fiscal federalism increases divergence between member states #expands (0.40) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 347
• Foreign-backed monetary systems subordinate a state to that foreign country. #qualifies (0.35) — Fanny Pigeaud_ Ndongo Samba Sylla, Africa’s Last Colonial Currency, 369