Globalization – Chances or Risks

Abstract

There are for and against arguments as regards the process of globalization. But what is globalization: a concept, a reality or a state as such? We can consider that globalization reflects the natural continuity of a process that appeared a long time ago and that has evolved ever since or a new phenomenon that was generated by the speed with which new technology and information flow. Milton Friedman, a fervent supporter of globalization, gives an answer to the question “what is globalization”; according to him, “globalization is not a simple tendency or phantasy but rather an international system. It is the new system that has replaced the Cold War system and that, like the former one, has its own laws and logic, being able to directly or indirectly influence today’s politics, the environment, geopolitics and the economy of every country in the world.” (Friedman, 2000). Globalization represents: the unlimited ascend of technology, the free flow of information, the annihilation of territorial limits, the uniformity of economy, the free flow of capital, the mobility of the person, as well as a political form of organization that aims at a future global government.

Keywords

• monetary policy
• financial policy
• sudden-stop
• sovereign debts crisis
• sudden formation of fixed capital
• aggregated offer
• aggregated demand.