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THE NEW NEO‐MERCANTILISM: CURRENCY MANIPULATION AS A FORM OF PROTECTIONISM
Author(s) -
Cwik Paul F.
Publication year - 2011
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/j.1468-0270.2011.02117.x
Subject(s) - mercantilism , protectionism , economics , currency , keynesian economics , free trade , international economics , monetary economics , market economy
Three waves of mercantilism have arisen in the past few centuries. The first wave was countered by the classical economists. The second wave (neo‐mercantilism) hit during the inter‐war period. Today's third wave uses monetary policy. We explore the mercantilist waves and argue in favour of a free trade policy. We conclude that an international system of free banking best protects the economy from currency manipulation as a form of protectionism.