International Monetary Power
Publication Year: 2006
Most economists and political scientists assume that efficiency, the invisible hand, is the preeminent factor in monetary decisions; questions of power and the role it plays in monetary policy are largely neglected. This pathbreaking book redirects attention to monetary power and provides an original framework for assessing its role in relations between sovereign states.
At present, states are the critical players in monetary relations; they control the production and distribution of the money supply, including the provision of international liquidity and the availability of payments financing. David M. Andrews and the contributors to this volume understand "power" as the capacity to alter the behavior of other actors, including the policies of other states. International Monetary Power provides a thorough overview of how money is used as a tool to achieve international political aims.
Contributors: David M. Andrews, Scripps College; Benjamin J. Cohen, University of California, Santa Barbara; Scott Cooper, Brigham Young University; Eric Helleiner, University of Waterloo; C. Randall Henning, American University and the Institute for International Economics; Jonathan Kirshner, Cornell University; Louis W. Pauly, University of Toronto; Andrew Walter, London School of Economics and Political Science
Published by: Cornell University Press
Download PDF (150.9 KB)
Title Page, Copyright
Download PDF (36.7 KB)
Download PDF (32.7 KB)
Part One Power, Statecraft, and International Monetary Relations...
Download PDF (22.4 KB)
David M. Andrews is associate professor of Politics and International Rela-tions at Scripps College and director of the European Union Center of Cali-Benjamin J. Cohen is Louis G. Lancaster Professor of International Politi-Scott Cooper is assistant professor of Political Science at Brigham YoungEric Helleineris associate professor in the Department ofPolitical Science at...
Download PDF (35.6 KB)
This book represents a genuinely collaborative enterprise. For sometime I have puzzled over the question of international monetary power, its sourcesand its implications; but the topic has proved a difﬁcult one to master. I suggestedto this volume’s contributors that we tackle the subject together, and they agreed.Since then, my partners have endured countless e-mail queries and comments with...
Download PDF (49.2 KB)
This volume illuminates the power dimension of international mon-etary relations: its meaning, its sources, and its practice. Simply put, internationalmonetary power exists when one state’s behavior changes because of its monetaryrelationship with another state. Monetary statecraft, in turn, refers to the consciousmanipulation ofmonetary relations in order to inﬂuence the policies ofother states....
PART ONEPower, Statecraft,and InternationalMonetary Relations
Monetary Powerand Monetary Statecraft
Download PDF (122.3 KB)
Egypt, determined to seize the Suez Canal and humiliate Egyptian president GamalAbdel Nasser, who had nationalized the international waterway some three monthsearlier. About a week after the invasion, on November 5, the pound sterling cameunder sustained pressure on international markets. The following day, British ofﬁ-cials contacted their U.S. counterparts to request support; they were, instead, told...
PART TWOMonetary Power
The Macrofoundationsof Monetary Power
Download PDF (110.4 KB)
What are the foundations of monetary power? David Andrews (chap.1 in this volume) distinguishes between two pathways for the exercise of monetarypower: the macro-level, linked to the problem of balance-of-payments disequilib-rium; and the micro-level, working through the capacity of money to alter actor interests and identities. The purpose of this chapter is to promote a clearer under-...
Domestic Sources of InternationalMonetary Leadership
Download PDF (132.0 KB)
Currency leaders enjoy various forms of inﬂuence and power. The“exorbitant privilege” of currency leaders, above all the ability to ﬁnance externaldeﬁcits by issuing IOUs and thereby to delay adjustment, has in particular receivedgreat attention in the literature. But what produces currency leaders? What, in otherwords, are the sources ofthis central aspect ofinternational monetary power? In the...
Below the State: Micro-LevelMonetary Power
Download PDF (109.1 KB)
The study of international monetary relations, whether conducted byeconomists or political scientists, has typically focused on the macro-level and es-pecially on issues related to balance-of-payments disequilibria between states, as thepreceding chapter suggests. These matters are unquestionably important. But thestudy of international monetary power must go well beyond this to consider a vari-...
Monetary Policy Coordinationand Hierarchy
Download PDF (138.6 KB)
Invoking a metaphor from family therapy, David Lake describes hier-archy as “one ofthe ‘dead horses’ plaguing the study and practice ofinternationalpolitics. It is a fact ofinternational life, but we refuse to recognize it. Indeed, formuch ofthe last ﬁfty years, we have refused to talk about it, and now, after decadesoftrying to forget, we have even lost the language to describe it.”1In this chapter, I...
PART THREEMonetary Statecraft
The Exchange-Rate Weaponand Macroeconomic Conflict
Download PDF (129.3 KB)
Monetary statecraft, understood as efforts to inﬂuence the policiesofother states by manipulating monetary conditions, has been a recurring featureof the global economy since World War II. At critical moments over the last fourdecades, the United States has exploited the vulnerability of countries in Europeand East Asia to changes in their currencies’ exchange rates vis-à-vis the dollar in...
Currency and Coercionin the Twenty-First Century
Download PDF (134.8 KB)
Most scholarship on monetary power—and especially those studiesthat have focused on the manipulation of currency values and monetary arrange-ments to advance political goals, or what this volume terms monetary statecraft—have emphasized the experiences ofthe twentieth century, and in particular the years1914–89, the period between World War I and the end ofthe Cold War.1In the early...
The Limits of Monetary Power:Statecraft within Currency Areas
Download PDF (127.0 KB)
Despite the abundant literature on individual currency areas such asthe franc zone and the sterling bloc, there has been a dearth ofcomparative politi-cal analysis ofhow these areas work. One important exception is Jonathan Kirsh-ner’s analysis ofhow monetary power is exploited by leading powers within currencyareas. He explains the mechanisms ofdependence and analyzes the various ways a...
Monetary Statecraftin Follower States
Download PDF (165.3 KB)
Common sense suggests that successful leaders need willing follow-ers. Coercion can sometimes be effective, but, as every new parent soon learns, out-comes achieved through self-interested acquiescence tend to be more satisfactoryand more enduring than those achieved through the application of brute force. Po-litical theorists typically focus on the concept of legitimacy when they evoke the...
Download PDF (59.3 KB)
Page Count: 224
Publication Year: 2006
Series Title: Cornell Studies in Money