Neo-merchantalism： Open Trade,Open Currency,and Open Monetary System？

Neo-merchantalism is the use of national currency in international trade among countries to increase global trade. This is called as open currency in the study. Neo-merchantalism also includes open trade to facilitate trade among countries. Thirdly, neo-merchantalism covers International Monetary Fund （IMF）. Because IMF regulates and controls money flow among countries in international trade, neo-merchantalism could be presented as follows： neo-merchantalism = open trade ＋ open currency ＋ IMF. Open trade and open currency exist in merchantalism theory. But today, there is also IMF control. Therefore, neo-merchantalism = merchantalism ＋ IMF. Globalism started in 1990 in global markets. It increased the amount of global trade from 13 trillion dollars to 60 trillion dollars. Therefore, each country has 6%-7% economic growth in global markets in the 2000s. It is expected that neo-merchantalism theory doubles global trade up to 100 trillion dollars. Because each country uses its money to do intemational trade, IMF＇s restrictions are important in currency flow, as countries may overprint their money to do more trade that increases inflation rate in global economies. For example, emission of United States （US） dollars increased 50% after 2008 crises in American economy. Therefore, the Federal Reserve aims to stop quantitative enlargement policy in order to impede inflation in American economy. In neo-merchantalism, IMF can restrict money print and currency flow according to country＇s gross domestic product （GDP）, because quantity theory in economy requires that a country can issue its national currency according to its national GDP.

Neo-merchantalism： Open Trade,Open Currency,and Open Monetary System？

neo-merchantalism, Intemational Monetary Fund （IMF）, international trade