“Rather than promoting growth, the present trend towards free capital mobility and global trade will result in increased volatility and inequality, both within and between countries, and so should be either carefully controlled or actively discouraged.” Discuss.

1)      Plan

2)      Intro

3)      Capital mobility and free trade defined

4)      Theory HO + Ricardo.

5)      Aims of economic system: efficiency and equality

6)      Outcomes

a)      Efficiency – liquidity and volatility

b)      Equality – standard of living. Crucially only rich countries are taken into account.

7)      Dynamics and extensions

a)      Measurable and unmeasurable effects

b)      A view from above – future market subsidies.

8)      Conclusions