It has been estimated that more money is used in four days of international bank transfers, result of currency transfer, than in all the production created by the USA economy in a year or by world economy in a month. This is one of the aspects Eduardo Cuenca García, Professor of Applied Economics of the Universidad de Granada, has dealed with in his book “International Economic Organization”, published by “Pearson”.
Professor Cuenca maintains that this instability favours speculative financial capital in such a way that nowadays “profit rates of bank institutions (result of currency market) are the highest profit rates of all the business rates in western world.” According to the Professor of Applied Economics of the University of Granada, “it is the victory of financial capital over the productive one and of speculative profit over welfare.”
In his book, Professor Cuenca goes into a historical analysis of international economy in the 20th century, and he also refers to the most relevant international economic organisms, to the Breton Woods Agreement, the International Monetary Fund, the World Bank, the regional banks for the development and, among many other sections, he analyses the aspects referred to the international economic organization, as well as to the Spanish case since its late incorporation t the International Economic Organization until its full integration in the project of the European Economic and Monetary Union.
This book also studies the dilemma about if the international economy outlines put into practice since the Second World War are still operative.
According to the author of this book, the great political influence of financial capitals over governments explains their resistance to develop economic and social policies for the benefit of a major financial orthodoxy and rigor, which would reduce their power.
“The result of te approval –says Professor Cuenca- of governments to financial markets´ flow involves an impoverishment of their sovereignty. Politicians, fearful of increasing taxes and destabilizing markets, have given way to financial agents in the fight for budget and fiscal policies, with the respective deterioration of social protection.”
Reference: Prof Eduardo Cuenca García. Dpt. Applied Economics. University of Granada.
Phone number: 958 243 716. Mobile: 607 632704.
E-mail: ecuenca@ugr.es
