Global Markets and National Politics: Collision Course or Virtuous Circle?

  title={Global Markets and National Politics: Collision Course or Virtuous Circle?},
  author={Geoffrey Garrett},
  journal={International Organization},
  pages={787 - 824}
  • G. Garrett
  • Published 1 September 1998
  • Economics
  • International Organization
Increasing exposure to trade, foreign direct investment, and liquid capital mobility have not prompted a pervasive policy race to the neoliberal bottom among the OECD countries. One reason is that there are strong political incentives for governments to cushion the dislocations and risk generated by openness. Moreover, countries with large and expanding public economies (when balanced with increased revenues, even from capital taxes) have not suffered from capital flight or higher interest… 
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