The evolution of economic policy and globalization processes

Abstract

The purpose of this article is to present and analyze general changes of the economic policy models implemented in most countries with developed market economy after the Second World War, their causes and consequences. These changes are considered to be a result of globalization. According to the author, economic policy in its traditional sense, implemented at the level of nation states, is becoming today increasingly ineffective, inefficient and inadequate to challenges created by the global economy. The main reason is that natural market failures (mostly monopolistic tendencies and negative externalities) manifest themselves to an even greater extent on a global scale, while remaining outside the regulatory impact of nation states. The author expresses the view that the execution of the
basic functions of economic policy on a global scale would be possible only after the creation of one global economic regulator with appropriate enforcement powers.