Monetary Power Reconsidered
The Struggle between the Bundesbank and the Fed over Monetary Leadership
Bibliographic Data
| ID | 6273033 |
|---|---|
| Authors | Arie Krampf (0000-0001-8725-254X, Academic College of Tel Aviv Yaffo, corresponding author) |
| Year | 2019 |
| Volume | 63 |
| Issue | 4 |
| Pages | 938-951 |
| Publication date | 2019-12-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | International Studies Quarterly (JOURNAL) |
| Journal identifiers | ISSN: 0020-8833 • E-ISSN: 1468-2478 |
| Publisher | Oxford University Press (PUBLISHER • GB) |
| DOI | 10.1093/isq/sqz060 |
| OpenAlex | W2969974298 |
| Language | EN |
| Citations received | 3 |
| References cited | 51 |
This article reexamines the theory of monetary power to explain the role of the Bundesbank (and Germany) in the emergence of the rules-based low-inflation regime in the late1980s and early 1990s. Our theory of monetary power draws on the notion of institutional power and the concept of monetary leadership, understood as the capacity to attract foreign investment, and thereby explains how domestic institutional features and contingent historical events affect countries’ external monetary power. This theory is employed to trace how the Bundesbank go-it-alone strategy in 1989 triggered a cross-national sequence of events that changed the international monetary order in a way that was consistent with the German interests. The transition was marked by a shift from the US-led pragmatist approach of international macroeconomic coordination to a rules-based approach founded on the principle of low-inflation–targeting. The article argues that this change took place despite the opposition of the Federal Reserve System (Fed) and the US Treasury. The article contributes to the literature on the decline of US hegemonic power as well as the literature on the mechanism of institutional change at the international level. It also sheds new light on current debates about the putative decline of the rules-based world order
Economics · German · Hegemony · Inflation (cosmology · Keynesian economics · Macroeconomics · Monetary economics · Monetary hegemony · Monetary policy · Opposition (politics · Order (exchange · Political economy · Political science · European Monetary and Fiscal Policies · Finance · Global Financial Crisis and Policies · Law · Social Policy and Reform Studies
The Road To Maastricht
Process-Tracing Methods
Ruling the World
All Politics Is Global
After Hegemony
The Retreat of the State
Institutions and Time in International Relations
Capital Ideas
Great Transformations
German Ordoliberalism as Agenda Setter for the Euro Crisis
Better Than the Euro? The European Monetary System (1979–1998)
From Pragmatism to Dogmatism
Between X and Y
Dollar primacy and American power
Sequence as explanation
Transnational feedback, soft law, and preferences in global financial regulation
Writing the rules of global finance
Constitutions and Commitment
The Politics of Monetary Leadership and Followership
The sources of European Union influence in international financial regulatory fora
National Preferences and International Institutions
Brief History of Neoliberalism
Domestic Institutions beyond the Nation-State
The role of the Delors Committee in the creation of EMU
Leadership, Hegemony, and the International Economy
German “Grand Strategy” and the Rise of Neoliberalism
The Persistent myth of lost hegemony
A New Approach for Determining Exchange-Rate Level Preferences
Power in International Politics
Globalization Pressures and the State
| Unique citing works | 3 |
|---|---|
| Citations per year | 0,5 |
| Citation span | 2020 - 2025 (6) |
| Citation velocity | recent |
| Highly cited | No |
| Citation types | Neutral: 3 |