In the age of globalisation both domestic and foreign economic policies play an important role in determining firms' strategies. Understanding such policies is an essential part of the cultural background of managers at all levels of a firm. At the same time, firms' choices have a greater impact on economic policymaking in a global economy, as the range of alternatives open to them expands. In this textbook, Professor Acocella analyses both sides of this relationship. Special emphasis is placed on current issues: in policymaking on the basis of social choice principles and the normative and positive theory of economic policy; and issues concerning the establishment of international public institutions that can match the global reach of the private institutions (markets and firms) that generate many of today's economic challenges. Broad in scope, this book is aimed at students who have completed an introductory course in both micro and macroeconomics.
• Analysis of both the principles and the techniques of public intervention in a global economy • Discussion of all topics in both intuitive and technical terms • Broad scope
Preface; List of symbols; 1. Introduction; Part I. The Market, Efficiency and Equity: 2. Market failures: microeconomic aspects; 3. Market failures: macroeconomic aspects; Part II. Normative and Positive Theory of Economic Policy: 4. The normative theory of economic policy; 5. Government failures: elements of a positive theory of economic policy; Part III. Microeconomic Policies: 6. Property rights, corporate governance and public enterprises; 7. Competition policies. Policies for externalities and public goods; 8. Industrial and regional policies. Redistributive policies; 9. Social choice and cost-benefit analysis; Part IV. Macroeconomic Policies: 10. Macroeconomic schemes of analysis in an open economy; 11. Macroeconomic objectives and monetary policy; 12. Macroeconomic objectives and fiscal policy; 13. Incomes and price policies; 14. Balance of payments policies; 15. Trade policies: free trade and protectionism; Part V. Private and Public Institutions in an International Setting: 16. Monetary systems and exchange rate regimes; 17. Development and trade organisations; 18. Regional public institutions: the European Union; Part VI. Globalisation and the Quest for a New Institutional Setting: 19. The internationalisation of private institutions: the globalisation of markets and production; 20. The challenges of globalisation for public policies; List of references; List of boxes; Author index; Subject index.