Political Economy: Global Inequality, Financial Crisis, and Impacts

This essay examines key aspects of political economy, focusing on global inequality since 1500 and the global financial crisis. The analysis begins by defining global inequality, highlighting its impact on economic differences between countries, and discussing the role of factors such as trade, technology, and capital. The essay then delves into the global financial crisis, exploring its causes, impacts, and the need for financial regulation. It discusses the instability of unregulated financial markets, the role of government intervention, and the consequences of the crisis, including unemployment and social unrest. The essay incorporates references to support its arguments, providing a comprehensive overview of these critical economic issues.

Running head: POLITICAL ECONOMY
Political Economy
Name of the Student
Name of the University
Author Note

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Table of Contents
Question 1........................................................................................................................................2
Global inequality since 1500.......................................................................................................2
Question 2........................................................................................................................................3
The Global Financial Crisis.........................................................................................................3
Reference.........................................................................................................................................6

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Question 1
Global inequality since 1500
The Global Inequality is a term, which defines the economic differences between various
countries where the gross domestic per capita provides the development through the high,
medium and low human quantity. For keeping the record of the inequality in the country, it is
necessary to look for a wide range of the economy value along with the challenges. It is one of
the important issues in recent days. In Australia, the income inequality has dropped recently by
20% where the counties are rich in populations. The Australian Bureau of Statistics (ABS)
Survey of Household Income and Wealth has published a report where the economical inequality
has described the increase of incomes and the affects in internationally (Coatsworth et al. 2015).
It was started since two decade ago when it became one of the sudden increase on the
exchange of the knowledge, trade and capital in internationally through the technical innovations
like internet to shipping containers and onwards. The Global Inequality helped in flourishing the
economical growth through the application of scientifically and culturally. The economical
evolution has found with a great benefited for the citizens as well. The increase of the global
economy also helps in the power to eradicate poverty for the country (Zanden et al. 2014).
In the early economic situation, the basic concept of the Global Inequality has helps in
the general concept in the whole world in the marketing area where the integrated become
familiar in this issues. According to the Wealth of Nations the economic, globalization has
criticized by free market economy where at some point it may not able to keep in equity. In the
world rather than reducing net inequality, levels can increase by using the introduction of new
technology and the foreign capital. In developing countries most of the developed Nations

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disbursed globalisation which is important and somehow the fear of it allows that it may not able
to work according to the terms and it may derogatory can be free for market policies (Zanden et
al. 2014). In the old history of economic society the benefit of Global in equity has arises the
questions, which are, described the benefits of the issues and it make more complicated day by
days. Therefore it is also important that it may be started 20200 or even 2000 years ago it has
been start here the answer is the good thing process where the in equity as described for the first
time (Coatsworth et al. 2015).
Question 2
The Global Financial Crisis
It was almost universally believed that unregulated financial markets are inherently
unstable, subject to fraud and manipulation by insiders, and capable of triggering deep economic
crises and political and social unrest. To protect the country from these dangers, in the mid 1930s
the US government created a strict financial regulatory system that worked effectively through
the 1960s. Financial crisis became more threatening. According to different Theory on financial
crisis, it always evaluates the policy perspective supportive for the financial market fair. It faced
with great crash the both economic and financial turbulence, which are related with the policy,
and Regime shaped. The economic and political events helps to reflect such issues in the
financial market theory causes where it helps to reflect according to the financial stability (Ang
et al. 2015). However, the financial regulation sometimes needs to be reconstruct due to the
radical the Regulation and it asked for justification. According to the efficient financial market
crisis it is necessary to follow such developments which provide the physician in the transition of
a new globally and integrated a regulated neo-liberal capitalism (Taylor, M.P. and Clarida 2014).

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There are several facts and effective challenges as found when the global economy has
affected in various individual countries and regions. Therefore, it needs to be increase the prices
and other necessities to be ensure (Vazquez and Federico 2015). It is the situation when an
imbalance of supplement as found in Economics of standard around Limited period then under
some less quantity of economic supplement can help on the economy of the country in such
situation. The markets need to restrain the growth and try to reinforce the various purposes and
increases the positive effectiveness in the market and its Looks for the significance on the
profound of market correction. In early days most of the time the economic crisis has found
when mass media called of consumption and quick profit. In such developed countries for the
citizens and the authority has found for the economic crisis.
Then most of the criminal balance activities have offered like Bank robberies, fights,
hacking and many more people use opportunities to make money under some illegitimate
activities where it will not become any helpful for society. Due to the dominance of
consumerism world economy affected and sometimes in such situation, the living of the
countries and the populations got affect. It is necessary to prepare to work. The more the
majority will work then it will help in growing and financial crisis if the people work for a low
AFI then it will be better advantages for that investor to provide the capitals.
Therefore, the Government of the different countries have using the high-tech
development for producing more goods in lower cost, which help to increase the economical
growth under various activities of the corporation. It is also necessary to remove price and legal
deformation for prevail the economy in the different industries specially the Agricultural
Products (Vazquez and Federico 2015). Wherever it is necessary to provide enough resources
without having profits a government will must provide such necessity. It is also important to

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enforce the responsibilities on decision maker for the industries and priority sectors for
developing their structure and decrease the issues or risks, which have arrived under some
consequences. Then it is necessary to run the whole structure of the country with more
confidence as it was all in the process and it must make good profit for that period which may be
seem to be risky but less attractive. The government must return every training practice at the
national level for keep the balance input and output uses.
It only has ability to control the economic system, production structure and the structure
of export import operation in the world economy crisis. It is need to for a great service of
structures where the Export Import system may help in increase the economic resources. The
unemployment is one of the important consequences of financial crisis when the government or
the country faced with such risk of financial crisis. It affected the employment however, it must
be manage and control by several government initiatives but it will take lengthy process to
organise such financial stage budget and regional budget.
Every country must required for different and improvement of economical construction
the more they have work force the more they needs funds and without the funds the banks and
the structure of the framework of economy and never get back on their positions without the
employment. People will take some other violent activities or they will involve with an ethical
activities like bank robbery, drug dealing and many more, which affects society directly.
Therefore, employment benefit is one of the necessary parts in the financial crisis (Taylor, M.P.
and Clarida 2014).

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Reference
Alesina, A., Michalopoulos, S. and Papaioannou, E., 2016. Ethnic inequality. Journal of Political
Economy, 124(2), pp.428-488.
Alfani, G. and Ryckbosch, W., 2016. Growing apart in early modern Europe? A comparison of
inequality trends in Italy and the Low Countries, 1500–1800. Explorations in Economic History,
62, pp.143-153.
Ang, A., Masulis, R.W., Pham, P.K. and Zein, J., 2015. Internal Capital Markets in Family
Business Groups During the Global Financial Crisis.
Claessens, S. and Van Horen, N., 2015. The impact of the global financial crisis on banking
globalization. IMF Economic Review, 63(4), pp.868-918.
Coatsworth, J., Cole, J., Hanagan, M.P., Perdue, P.C., Tilly, C. and Tilly, L., 2015. Global
Connections: Volume 2, Since 1500: Politics, Exchange, and Social Life in World History.
Cambridge University Press.
Moatsos, M., Baten, J., Foldvari, P., van Leeuwen, B. and van Zanden, J.L., 2014. Income
inequality since 1820.
Serricchio, F., Tsakatika, M. and Quaglia, L., 2013. Euroscepticism and the global financial
crisis. JCMS: Journal of Common Market Studies, 51(1), pp.51-64.
Taylor, M.P. and Clarida, R. eds., 2014. The global financial crisis. Routledge.
Vazquez, F. and Federico, P., 2015. Bank funding structures and risk: Evidence from the global
financial crisis. Journal of banking & finance, 61, pp.1-14.

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Zanden, J.L., Baten, J., Foldvari, P. and Leeuwen, B., 2014. The changing shape of global
inequality 1820–2000; exploring a new dataset. Review of Income and Wealth, 60(2), pp.279-
297.