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Economy, science, social sciences, such as whole has evolved. Has evolved because of social life. Until the last decade of last century, capitalism was a system in the international level. Capitalism was different every nation. Countries trade with each other was doing, that was free movement of goods and services. But the movement of capital, in terms of freedom, the level was too low to be compared with the current situation. What was the free movement of labor in the past, nor now. Set out with the ideal of political unity of the countries participating in the European Union, even for new restrictions on the movement of labor is put.
According to these constraints formed the old economy was a science. There are books about the economy in all stages before the closed economy to open economy was late. This method was of a sense of the past. Economy because many of the free movement of goods and services were closed except for outside. Even in many economies, even the movement of goods and services was limited. In other words, the economics of the real case of a closed economy, open economy in order to show the ideal situation being described. Closed today about the economy and move to an open economy there is not a meaning. Because now almost all of the economy and the movement of goods and services but also in terms of capital position came open economy.
The emergence and rapid spread of the global crisis caused by the open economic system in a closed economy model to apply to the former type is also available. Crisis, the global system brings us a new scientific framework of the new structure should be put into a development are described. The free trade of goods and services that the new framework, capital can move freely, subject to the restriction of movement of labor that must have a system framework. Old models to explain the new system or when trying to manage the balance is broken.
Free movement of goods and services was becoming widespread in the early twentieth century.
Of a closed economy to open economy that was the subject of the first step. Did not immediately respond to that development economics. The old model to understand and to interpret the new system worked. Failed. And then the Great Depression broke out in 1929. The rapid liberalization of capital movement emerged after the 1980s. Was free capital movements, but they failed to supervise the development of tools. Although there were some initiatives such as the Tobin tax which attempts were far from being controlled. Accompanied by changes in the model system could not change this time from 2008 to 2009 the global crisis emerged.
Changes in the economy, while the application of theoretical modeling of the structure and therefore can not enter into an appropriate change among the causes of the crisis is.
The main mechanisms that determine the goods and services trade is a mechanism set up. Floating exchange rate system, implementation of the whole world down the flow of goods and services in an environment, this mechanism allows movement in the right direction. The basic mechanisms that determine the movement of capital is interest. Interest in determining the mechanisms set up exactly as was left to the market order is not valid. With interest rates still the old way, that the Central Bank has taken the decision is determined. Though seemingly only to central banks have set their exchange rates but also for ultimately determining the interest rate market has become. Yet here too late after being released of capital movements as well as the determination of exchange rates, our work should be left to the market. Central Bank interest rates in the market and determined that this interest will be exchanged through.
At the moment is trying to emerge from the crisis in the global system. After a long struggle to draw the outline of this new system will lead. According to the paradigm shift that will be studied to develop a theoretical structure. After a while the new economy, according to this paradigm shift will replace the old economy.