Neomercantilism

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Neomercantilism is a policy regime that encourages exports, discourages imports, controls capital movement, and centralizes currency decisions in the hands of a central government.[1] The objective of neomercantilist policies is to increase the level of foreign reserves held by the government, allowing more effective monetary policy and fiscal policy.

Background[edit]

Neomercantilism is considered the oldest school of thought in international political economy (IPE).[2] It is rooted in mercantilism, a preindustrial doctrine, and gained ground during the Industrial Revolution.[2] It is also considered the IPE counterpart of realism in the sense that both hold that power is central in global relations.[2] This regime is also associated with corporatism particularly during the 1970s when both were treated as components of a functional system and policy goals.[3] In the United States, neomercantilism was embraced in the late 20th century amidst the move to buttress American industries from Japanese competition.[4] American thinkers who subscribed to the doctrine, however, include Alexander Hamilton, one of the Founding Fathers of the United States and the first U.S. secretary of the treasury.[2]

See also[edit]

References[edit]

  1. ^ Hamilton, Leslie; Webster, Philip (2018). The International Business Environment. Oxford: Oxford University Press. p. 429. ISBN 978-0-19-880429-1.
  2. ^ a b c d Cohn, Theodore H. (2016). Global Political Economy: Theory and Practice, Seventh Edition. Oxon: Routledge. pp. 55, 58. ISBN 9781138945654.
  3. ^ Gillingham, John; III, John R. Gillingham. European Integration, 1950-2003: Superstate Or New Market Economy?. Cambridge, UK: Cambridge University Press. p. 110. ISBN 978-0-521-01262-1.
  4. ^ Clemens, Walter C. (2004). Dynamics of International Relations: Conflict and Mutual Gain in an Era of Global Interdependence, Second Edition. Lanham, MD: Rowman & Littlefield. p. 394. ISBN 0-7425-2821-9.
  • O'Brien, Patrick Karl; Clesse, Armand, eds. (2002). Two Hegemonies: Britain 1846–1914 and the United States 1941–2001. Aldershot, England: Ashgate.