Goodbye, Free Trade; Hello, Mercantilism.(Next 2008; WORLD ECONOMICS)

Newsweek | January 7, 2008| | Copyright

Byline: Robert J. Samuelson

As countries grow more interdependent, they're also becoming more nationalistic.

Here's today's quiz. What do the following have in common: (a) Vladimir Putin; (b) China's currency, the renminbi; (c) the U.S.-Peru trade agreement; (d) Hugo Chavez. Answer: they all reflect the "new mercantilism." It's a significant and ominous development affecting the world economy. Even as countries become more economically interdependent, they're also growing more nationalistic. They're adopting policies intended to advance their own economic ...

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