Globalization's Impact: Economic Theories Fail to Predict Preventative Measures.
The article discusses how globalization has changed the global economy by increasing capital flows and production efficiency. This has led to lower costs for multinational companies but also increased systemic risk for investment funds. The growth in global capital flows has made asset prices more important in measuring inflation and analyzing economic policies. Traditional economic theories have struggled to predict and address global economic crises due to not considering the profit motives of financial institutions and speculative demand for money. The author suggests that Keynes's theory on the demand for money is crucial for understanding current economic issues and calls for a new macroeconomic model based on advanced and developing economies.