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.
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.
- ↑ Guerrieri, Paolo; Padoan, Pier Carlo (1986). "Neomercantilism and International Economic Stability". International Organization. 40 (1): 29–42. doi:10.1017/S002081830000446X. ISSN 0020-8183. JSTOR 2706741. S2CID 154785573.
- ↑ Hettne, Björn (1993). Magnusson, Lars (ed.). Mercantilist Economics. Recent Economic Thought Series. Dordrecht: Springer Netherlands. pp. 235–255. doi:10.1007/978-94-011-1408-0_10. ISBN 9789401114080.