Full Description:
While Globalization can refer to cultural exchange and human interconnectedness, in the context of neoliberalismMonetarism Monetarism is the economic school of thought associated with Milton Friedman, which rose to dominance as a counter to Keynesian economics. It posits that inflation is always a monetary phenomenon and that the government’s role should be limited to managing the currency rather than stimulating demand. Key Mechanisms: Inflation Targeting: Using interest rates to keep inflation low, even if high interest rates cause recession or unemployment. Fiscal Restraint: Opposing government deficit spending to boost the economy during downturns. Critical Perspective:Critics argue that monetarism breaks the post-war social contract. By prioritizing “sound money” and low inflation above all else, monetarist policies often induce deliberately high unemployment to discipline the labor force and suppress wages. It represents a technical solution to political problems, removing economic policy from democratic accountability. , it is an economic project designed to facilitate the frictionless movement of capital. It creates a single global market where corporations can operate without regard for national boundaries.

Key Mechanisms:

• Capital Mobility: Money can move instantly to wherever labor is cheapest or taxes are lowest.

• Offshoring: Moving manufacturing and jobs to countries with fewer labor protections.

• Race to the Bottom: Nations compete to attract investment by lowering wages, slashing corporate taxes, and weakening environmental laws.

Critical Perspective:
Neoliberal globalization creates a power imbalance: capital is global, but labor and laws remain local. This allows multinational corporations to pit workers in different countries against one another, eroding the bargaining power of unions and undermining the ability of democratic governments to regulate business in the public interest.