Neomercantilism

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Neomercantilism is a government policy that supports more exports, less imports, and more control over investment (capital movement). Also, the government has the power to make decisions involving money (currency).[1] The goal is to increase foreign reserves, which gives the government more power over money.

Origin[change | change source]

The idea comes from Keynesian economics. According to UNESCO, mercantilism is the belief that the state's wealth must be protected by the government. This makes the state's money a nationalistic concern.[2]

References[change | change source]

  1. Guerrieri, Paolo; Padoan, Pier Carlo (1986). "Neomercantilism and International Economic Stability". International Organization. 40 (1): 29–42. ISSN 0020-8183.
  2. Hettne, Björn (1993). Magnusson, Lars (ed.). Mercantilist Economics. Recent Economic Thought Series. Dordrecht: Springer Netherlands. pp. 235–255. doi:10.1007/9789401114080_10. ISBN 9789401114080.