neomercantilism
{{Short description|Economic policy}}
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Neomercantilism (also spelled neo-mercantilism) is a policy regime that encourages exports, discourages imports, controls capital movement, and centralizes currency decisions in the hands of a central government.{{Cite book|last1=Hamilton|first1=Leslie|title=The International Business Environment|last2=Webster|first2=Philip|publisher=Oxford University Press|year=2018|isbn=978-0-19-880429-1|location=Oxford|pages=429}} 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
Neomercantilism is considered the oldest school of thought in international political economy (IPE).{{Cite book|last=Cohn|first=Theodore H.|title=Global Political Economy: Theory and Practice, Seventh Edition|publisher=Routledge|year=2016|isbn=9781138945654|location=Oxon|pages=55, 58}} It is rooted in mercantilism, a preindustrial doctrine, and gained ground during the Industrial Revolution. It is also considered the IPE counterpart of realism in the sense that both hold that power is central in global relations. This regime is also associated with corporatocracy particularly during the 1970s when both were treated as components of a functional system and policy goals.{{Cite book|last1=Gillingham|first1=John|title=European Integration, 1950-2003: Superstate Or New Market Economy?|last2=III|first2=John R. Gillingham|date=2 June 2003 |publisher=Cambridge University Press|isbn=978-0-521-01262-1|location=Cambridge, UK|pages=110}} In the United States, neomercantilism was embraced in the late 20th century amidst the move to buttress American industries from Japanese competition.{{Cite book|last=Clemens|first=Walter C.|title=Dynamics of International Relations: Conflict and Mutual Gain in an Era of Global Interdependence, Second Edition|publisher=Rowman & Littlefield|year=2004|isbn=0-7425-2821-9|location=Lanham, MD|pages=394}} 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.
See also
References
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- {{cite book
|year=2002
|editor1-last=O'Brien
|editor1-first=Patrick Karl
|editor1-link=Patrick K. O'Brien
|editor2-last=Clesse
|editor2-first=Armand
|title=Two Hegemonies: Britain 1846–1914 and the United States 1941–2001
|location=Aldershot, England
|publisher=Ashgate
}}
- Mueller, Milton. “Regulation of platform market access by the United States and China: Neo‐mercantilism in digital services.” Wiley, Policy & Internet (2021).
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Category:International trade theory