tag:blogger.com,1999:blog-1331441403058020963.post7046274595048446331..comments2024-03-28T06:49:24.930-04:00Comments on International Political Economy at the University of North Carolina: The Great Crash 2008, Part TwoThomas Oatleyhttp://www.blogger.com/profile/14092437150746625670noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1331441403058020963.post-80647177050543384822011-09-17T19:30:30.455-04:002011-09-17T19:30:30.455-04:00My guess is that it's linked to developments i...My guess is that it's linked to developments in the global political economy, which have increased the rewards for high-skilled services (huge increase in global demand) while reducing the rewards for low-skilled labor (huge increase in global supply). The US, which has a comparative advantage in high-skill services, thus shifted more and more into those services. Finance chief among them. Something similar has happened in the UK, I believe. <br /><br />I wrote about some of this in the context of criticizing Cowen's *Great Stagnation* hypothesis:<br /><br />http://ipeatunc.blogspot.com/2011/06/there-is-no-great-stagnation-only-great.html<br /><br />http://ipeatunc.blogspot.com/2011/06/follow-up-on-tgs-graphs.html<br /><br />But I'd also add that network dynamics in the international financial system are important. I briefly discussed that here:<br /><br />http://ipeatunc.blogspot.com/2011/09/system-dynamics-remain-important.htmlKindred Winecoffhttps://www.blogger.com/profile/14330671232391851377noreply@blogger.comtag:blogger.com,1999:blog-1331441403058020963.post-61382376951691558672011-09-15T18:56:34.412-04:002011-09-15T18:56:34.412-04:00Perhaps you've addressed this earlier, but wha...Perhaps you've addressed this earlier, but what was it that 'caused' the shift in the structure, i.e., the tighter links of the various sectors to finance? (I would have a guess or two, but would be interested in your view, if not too big a question for a comment thread.)LFChttps://www.blogger.com/profile/13551197682770555147noreply@blogger.com