Government

A populist backlash to globalization has ushered in nationalist governments and challenged core features of the liberal international order. Although startling in scope and urgency, the populist wave has been developing in declining regions of wealthy countries for some time. Trade, offshoring,...

Governments have a number of policy tools that can be used to address pressure on the balance of payments. When market pressure leads to an unsustainable decline in the relative value of the domestic currency, authorities can: (1) sell reserves, (2) raise interest rates, (3) impose capital...

Analyses of the political economy of exchange-rate policy posit that firms and individuals in different sectors of the economy have distinct policy attitudes toward the level and the stability of the exchange rate. Most such approaches hypothesize that internationally exposed firms prefer more...

The economic rationale for international monetary policy coordination is not strong. This is the conclusion, not only of the traditional Mundell-Fleming literature, but also the more recent New Open-Economy Macroeconomics literature on international monetary coordination. Yet a broader political...