Flashcards in Lecture 3 - A Global Economy Deck (17)
Who came up with the World Systems Theory?
What is the two definitions of the World System Theory?
- interdependent system
- economic and politic links
What are the 3 key features of the World Systems Theory?
1. A single world market
2. Hierarchy of economic, core, semi-periphery, periphery
3: Long term change (cycles of economic development)
What are Kondratiev cycles?
Capitalism as a series of cycles or waves (Adam Smith)
Who is Kondratiev and what did he do?
Famous Russian economist, he built on the idea of capitalism in cycles in the year 1925
What did Konratiev identify?
50 year long cycles of boom and depression for the capitalist world since mic C-18th
Who updated Kondratiev in 2009?
What are the 6 waves of Daniel Smihulas updated theory?
1. (1609-1780) wave of financial agricultural revolution
2. (1780-1880) industrial
3. (1880-1940) technical
4. (1940 - 1985) scientific - technical
5. (1985-2015) info and telecommunications
6. (2015-2035?) - hypothetical post-info and technological
What wave are we in now?
Information and telecommunications
Name 4 reasons for the American Banking crisis?
1. Banks over lent and took on too much risk
2. US Housing bubble peaked in 2006
3. Banks lent mortgages to subprime households
4. US mortgages and banks linked to UK banks
Name 4 things which happened when the solvency of banks were questioned?
1. Decline in credit availability and investor confidence
2. Stock market losses during 2008-2009
3. Economies slowed worldwide as credit tightened and trade declined
4. Govs consider austerity measures
Name 3 causes of the Eurozone crisis?
1. Debt led consumption
2. Germany experienced wealth in recent years from export
3. Rapid growth in South Europe meant higher wages and consumption a so higher debt rations
5 causes of the Eurozone Crisis on South Europe?
1. Credit restricted and more expensive
2. People paying more to service debts
3. Less disposable income = slowing of economy
4. High wages, price disadvantage, less exports to Germany
5. Needs money input or bailout
Labour costs in a percentage of Germany in comparison to Spain?
Trade deficits Ger and Spn in 2010?
Total Debt as a percentage of annual economic output in 2010? (Ger, Spn)