The imbalance of the global economy and the threat of the possible double dip recession force to reconsider the role of economic policies. Like never before, functions of states to identify key guidelines of development of domestic economy should be reassessed in order the private and public interests were balanced along with restitution of domestic justice and efficiency.
The main driver of economy is demand. Thus, let’s review where the demand comes from. The criterion which may characterise the propensity to consume and determines the growth of economy is profit. In addition, it is assumed that the greatest efficiency is achieved in the market economy. However, the circumstances of perfect competition create superior conditions for domination of monopolies those dictate prices of goods and services. Consequently, the trends of global economy are also under their influence.
Thus, I consider how important the states’ economic policies are nowadays. Moreover, how long it could take for the governments of states to retrieve their authority and intellectual creativity, rethink the concepts of the states’ economic policies so that the global economy distortions were reduced and social justice recovered?
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