What are some obstacles to successful international economic policy coordination?

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What are some obstacles to successful international economic policy coordination?

What are some obstacles to successful international economic policy coordination?

 

Answer & Explanation (1)

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In a globalized economy,international relations are very complex.The nature of such relations between countries vary from conflict to coordination.

Explanation

Several obstacles hinder successful policy coordination. Even if national economic objectives are harmonious, there is no guarantee that governments can design and implement coordinated policies. Policy makers in the real world do not always have sufficient information to understand the nature of the economic problem or how their policies will affect economies. Implementing appropriate policies when governments disagree about economic fundamentals is difficult for several reasons.

Some nations give higher priority to price stability, for instance, or to full employment, than others.
 Some nations have a stronger legislature, or weaker trade unions, than others.
The party pendulums in different nations, for example, shift with elections occurring in different years.
One nation may experience economic recession while another nation experienced rapid inflation.

Verified Answer

Policy coordination is the need for successful economic policy implementation in a global world.However considering the different social and political climate in different nations, it is equally difficult to implement a coordinated approach.

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