Trade policy and national identity: Why Keynes was opposed to protectionist policies?

Arbeitspapier

The views of Keynes on Trade policy are clear: Protectionism as well as hoarding a surplus in the balance of payment are wrong. This paper analyzes the optimality of protectionist policies and having a surplus in the context of the international political system. I show that in the situation of a hegemonic country, all classes - the working class as well as the elite - opt for free trade. But, in a balance of power context, wherein no single actor on the international scene possesses hegemonic status, the working class will choose protectionism, having a surplus, asking for harsh reparations, while the transnational elite and Keynes will not.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 2020-02

Classification and Topics

• Classification: Wirtschaft ; History of Economic Thought through 1925: International Trade and Finance ; History of Economic Thought since 1925: International Trade and Finance ; General Aggregative Models: Keynes; Keynesian; Post-Keynesian ; International Finance: General
• Subject: Balance of Power ; Carthaginian Peace ; Hegemony ; Reparations ; National Sovereignty ; Trade Policy

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Brezis, Elise S.
• Event: Veröffentlichung
• (who): Bar-Ilan University, Department of Economics
• (where): Ramat-Gan
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/227635
• Last update: 10.03.2025, 11:42 AM CET