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Financial Statecraft

  • Leslie Elliott Armijo
Chapter
Part of the Palgrave Handbooks in IPE book series (PHIPE)

Abstract

Financial statecraft traditionally means the use, by incumbent national governments, of foreign assistance and financial sanctions to influence other countries. Armijo’s contemporary definition also includes state efforts, both bilateral and in coalition, to leverage national monetary and financial capabilities for greater voice and authority in global governance, markets, and multilateral regulation. The US’ postwar dominance, resting on economic and military might, established a world order founded in Western, mostly liberal, leadership. Today, China’s rise reflects high domestic savings, investment, and growth, while its persistent balance of payments surplus pushes towards capital outflows. Incumbents in China, and other emerging powers, now will exercise financial statecraft in service of their global and regional visions.

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Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Leslie Elliott Armijo
    • 1
  1. 1.International StudiesSimon Fraser UniversityVancouverCanada

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