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). 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.
References[change | change source]
- Guerrieri, Paolo; Padoan, Pier Carlo (1986). "Neomercantilism and International Economic Stability". International Organization. 40 (1): 29–42. ISSN 0020-8183.
- 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.