16 Questions
Who coined the term 'Risk Society'?
Ulrich Beck
What is stability in the context of economics?
Firmness in position, permanence, and resistance to change
Which economist advocated for government interference in harsh economic times?
John Maynard Keynes
What is monetarism in the context of economics?
Stabilization through control of money in circulation
What is the term used to describe the period of high growth and low volatility?
Great Moderation
What is the 'Tragedy of the Commons'?
Exhaustion of public goods due to free market economy
What is the primary concern of sustainability?
Long-term capacities of a system to exist
What is the title of the study that analyzed the connection between economic growth and scarcity of resources?
The Limits to Growth
What is the primary focus of the Solow-Swan Model?
The sheer increase of the amount of resources added to input
Who is credited with developing the concept of Human Development Index (HDI)?
Mahbub ul Haq
What is the main concern of Nicolas Stern in his 2007 work?
The ecological challenges for sustainability
What is the purpose of the Roll-Over Effect in measuring economic growth?
To express output in monetary value
What is the primary approach of Neo-liberalism?
Viewing markets as the most efficient way of social coordination
What is the main difference between the Amended Growth approach and the More Growth approach?
The Amended Growth approach uses multiple indexes, including HDI
What is the name of the index that includes arts, culture, and recreation, among other factors?
Canadian Index of Wellbeing
Who coined the concept of Gross National Happiness?
Jigme Singye Wangchuk
Study Notes
Risk Society
- Coined by Ulrich Beck in 1986
- Main reason for current problems: inability of modern societies to produce stability and sustainability
Stability
- Firmness in position, permanence, and resistance to change
- Avoiding large swings in economic activity, high inflation, and excessive volatility in exchange rates and financial markets
- Indexes describe the economy in short-term categories
Challenges to Stability
- Excessive highs and lows
- Government should interfere and raise spending in harsh times to prevent long-lasting depression (John Maynard Keynes)
- Monetarism: stabilization could be produced through control of the amount of money in circulation (Milton Friedman)
Great Moderation
- Sophisticated stabilization policy measures could guarantee high growth without upsetting volatilities (Bernanke, 2004)
- 1990s: many collapses in the world economy, including the Asian Financial Crisis in 1997, Russian Crisis, and Argentina Disaster in 1999
- Internet Bubble (2000): new technologies made economic process faster and less predictable, financial markets boosted by speed and complexity of internet-backed transactions
Sustainability
- Long-term capacity of a system to exist
- Development that meets the needs of the present without compromising the ability of future generations to meet their own needs
- "Tragedy of the Commons" (Garret Hardin, 1968): public goods got exhausted by actors in a free market economy
- "The Limits to Growth" (Club of Rome, 1972): connection between economic growth and scarcity of resources
Growth Models
- Solow-Swan Model (1950s): increase of resources added to input could lead to diminishing marginal returns
- New Growth Theory (Paul Romer and Robert Lucas, 1980s): endogenous factors like human capital and education recognized as crucial for growth
Approaches to Growth
- Roll-Over Effect: domination of GDP index in measurements of national economies' performance
- More Growth: the more goods produced, the better for economies
- Nicolas Stern (2007): ecological challenges for sustainability as classical economic externalities
- Amended Growth: GDP is just one important index; other indexes include HDI, Gross National Happiness, and Canadian Index of Wellbeing
This quiz explores the concept of Risk Society, coined by Ulrich Beck, and its relation to stability in modern societies, including economic stability and sustainability.
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