The new mercantilism in international relations: The case of France's external monetary policy

We argue that mercantilism is not an anachronism, but a pattern of interaction between economies functioning analytically as subsystems both of nations and societies. The relation between theory and policy in France's post-war monetary history suggests two concepts of mercantilist rationalization of external economic policy. Although verbalized in terms of liberal economic theory, French monetary policy served nationalist diplomacy (diplomatic mercantilism) and/or the specific societal politics of the domestic economy (political mercantilism). Diplomatic and political mercantilism are indices of indeterminacy of international economics. Societal politics and international economics are thresholds of feasibility for diplomatic mercantilism. But cumulative rationalization of feasible external economic policy in terms of both political and diplomatic mercantilism is not excluded. As a function both of national system maintenance and societal integration, mercantilism is more easily explained in terms of sociological functionalism than in terms of either international functionalism or Realism alone.