ABSTRACT

Source: Global Political Economy: Understanding the International Economic Order (Princeton University Press, Princeton, 2001), pp. 362-76.

Gilpin contests the view that globalization is eroding national economies and rendering the state obsolete as an economic actor. He argues first that many of the reputed effects of globalization are the result of national policies. He then shows that although globalization has made macroeconomic policy formation more complex and risky for states, they still retain considerable control over their own economies. He concludes by showing that a broader historical perspective reveals that states have never had unfettered control of their economies.