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Exchange Rate Choices Matter to National Security

In: Economic Instruments of Security Policy

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  • Gary M. Shiffman

Abstract

A country can be more or less susceptible to external monetary actions based upon the way in which its currency gets traded internationally. Think of a domestic currency in three ways: as the domestic money produced by a state, as a medium of exchange which allows for international trade in goods and services, and as a good itself, traded in international financial markets. We will explore these three sides of the concept with the goal of considering specific policies—ways to use international finance to influence foreign leaders.

Suggested Citation

  • Gary M. Shiffman, 2006. "Exchange Rate Choices Matter to National Security," Palgrave Macmillan Books, in: Economic Instruments of Security Policy, chapter 7, pages 109-121, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-50537-7_8
    DOI: 10.1057/9780230505377_8
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