2006-12-13 03:02:39 · 2 answers · asked by Crysta 2 in Social Science ➔ Economics
Fiscal policy drives demand theoretically in a closed model. If the economy is integrated, you use the open model where any increases in domestic fiscal policy will be diluted out through the international markets.
2006-12-13 08:08:28 · answer #1 · answered by Anonymous · 0⤊ 0⤋
There are both side:
Positive: International integration will force all nations to keep pace with the international speed and move in one direction with nearly same pace which will instill fiscal discipline.
Negative: Less economically developed may collapse because of the lag behind other developed nation and their economy can became totally dependent on these nation propagating an order where 10-15 economies control full world.
2006-12-17 03:23:31 · answer #2 · answered by Jigyasu Prani 6 · 1⤊ 0⤋