week 1-3 political economy

Max Weber’s definition of a state

monopoly of the legitimate use physical force

hard power

force/violence; GDP

soft power

social

hegemony

form of power where people consent to control/dominance

sovereighnty

states ability to rule itself

ligitimacy

states credibility from its people/states

GDP

way to measure countries economic power

colonialism

state controlling another state

markets

place where people buy/sell things; general market between buyer seller; economy

laissez faire economy

economy with no government intervention

command economy

government controls prices/economy

3 criteria of money

value/trust, medium of exchange, unit of account

comparative advantage

principal behind trade; every state has an advantage to a product and should trade the rest

monetary policy

central bank addresses economic issues/recession/inflation

fiscal policy

government spending/tacing to addresss economic issues/recession/inflation

globalization

connection between different nations worldwide

Adam Smith

invisible hand, laissez faire economics