We see this in regions of the UK for example where de-industrialisation has taken place leading to much higher rates of long-term unemployment and a worsening of economic and social deprivation.
With floating exchange rates, high capital mobility may render expansionary fiscal and monetary policy ineffective or even counterproductive … Internationalization will undermine the autonomy and efficiency of government macroeconomic policy. One paradox of globalisation is that it has probably reduced inequality between countries but increased it within nations.
It is the essential feature of the modern age. An insightful evaluation of the evidence on international pricing to market is given by P. At first thought, it is plausible why one might agree with the claim. Among them are the effects of policy variability on exchange rate levels and risk premiums; the effects of variability on the levels of preset nominal prices and, hence, on resource allocation; and the exact welfare analysis of macroeconomic policy rules and exchange rate regimes.
Perhaps surprisingly, there seems to be little scope for such coordination, as Rogoff and I show.