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Trade Policy and National Identity: Why Keynes Was Opposed to Protectionist Policies?

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  • Elise S. Brezis

    (Bar-Ilan University)

Abstract

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.

Suggested Citation

  • Elise S. Brezis, 2020. "Trade Policy and National Identity: Why Keynes Was Opposed to Protectionist Policies?," Working Papers 2020-02, Bar-Ilan University, Department of Economics.
    • Handle: RePEc:biu:wpaper:2020-02
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Balance of Power; Carthaginian Peace; Hegemony; Reparations; National Sovereignty; Trade Policy;
    All these keywords.

    JEL classification:

    • B17 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - International Trade and Finance
    • B27 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - International Trade and Finance
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • F30 - International Economics - - International Finance - - - General

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