Global Political Economy

Question: Discuss about the Global Political Economy. Answer: Part I focuses on giving the explanation of circumstances leading to the signing of Dodd-Frank Act in 2010. This followed the wake of 2008 financial crisis and positioned as the legislative response to the crisis to reduce risky financial products (Act and Protection 2012). The investment banks have defended their actions by nodding to the move by Tramp as it will make them gain financially. Trump administration seeks to unwind the Act because it restricts borrowing from bank. The industry should be subject to more regulation to prevent the repeat of financial bailouts thereby preventing need for hundreds of billions of dollars in bank as well as insurance bailouts witnesses in 2009 and 2008 (Acharya et al. 2010). References Acharya, V.V., Cooley, T.F., Richardson, M.P. and Walter, I., 2010. Regulating Wall Street: The Dodd-Frank Act and the new architecture of global finance (Vol. 608). John Wiley Sons. Act, C.P. and Protection, C.C.F., 2012. Dodd-Frank Act.