Free DP Download 22 October 2021 - Progressive Pensions as an Incentive for Labor Force Participation
Fabian Kindermann, Veronika Pueschel | CEPR Discussion Paper No. 16380 | July 2021
While the globalization of production has been a prominent target of anti-globalization backlash, globalized finance has seemed to be much less in the public bull's-eye. The blueprint for the postwar international economy agreed at Bretton Woods in 1944 envisioned nothing like today's extensive and fluid global capital market. The demise of the 1946-1973 fixed exchange rate system, however, also brought a progressive dismantling of barriers to international financial flows motivated by special-interest politics, national economic competition, and ideology â?? alongside the benign desire for a more efficient international allocation of capital. Unfortunately, free cross-border financial capital mobility can compromise governments' capacities to attain domestic economic and social goals in several ways. This essay links the dynamics of financial liberalization to the Teflon-like resilience of finance to a backlash so far and suggests that stronger backlash could emerge if national governments fail to enhance multilateral cooperation to manage the financial commons.
You can also listen to a podcast where Fabian Kindermann discusses the paper's findings with CEPR's Tim Phillips