1. 6.2. Managing the Global Economy: From Theory to Practice Learning Objectives: –Familiar with the objectives of global economic management –Understand how liberal economic principles are put into practice –Familiar with the evolution of the global financial system

2. 6.2. Managing the Global Economy: From Theory to Practice Creating the Liberal International Economic Order –Rules and regulations –Trade and financial agreements –Institutions

3. 6.2. Managing the Global Economy: From Theory to Practice Creating the Liberal International Economic Order –Objectives

4. 6.2. Managing the Global Economy: From Theory to Practice Creating the Liberal International Economic Order –Encouraging trade: from theory to practice

5. Encouraging Trade: from theory to practice Tariff reductions Nondiscrimination Reciprocity National treatment Non-tariff barrier reductions

6. 6.2. Managing the Global Economy: From Theory to Practice Creating the Liberal International Economic Order –Encouraging financial flows

7. Encouraging Financial Flows The Bretton Woods System

8. Encouraging Financial Flows The Collapse of the Bretton Woods System

9. Encouraging Financial Flows The International financial system today –The value of currencies is based on:

10. Encouraging Financial Flows The International financial system today –Financial flows encouraged by major currency markets

11. Encouraging Financial Flows The International financial system today –The role of Central Banks Study Tip: Although we will cover this in a later class, think about how the other theoretical perspectives we examined in the course would respond to this liberal vision of economic principle and practice.

12. Encouraging Financial Flows The International financial system today –The role of the International Monetary Fund

13. The International Monetary Fund (IMF)

14. Summary At the end of this class, you should be familiar with the objectives of global economic management. You should have a good understanding of how liberal economic theory have been put into practice. You should be familiar with the evolution of the global financial system, and how that financial system operates.