Economy under Sanctions : Their Implications and Impacts on Politics and policies

Economic sanctions are domestic penalties applied by one country (or group of countries) on another country.Economic sanctions may include various forms of trade barriers and restrictions on financial transactions. Economic sanctions are not necessarily imposed because of economic circumstances.They may also be imposed for a variety of political and social issues. Economic sanctions can call for democratic reform or a regime/leadership change to address human rights violations.the possible shocks posing the greatest risk for the world economy as of March 2012 include a worsening of the sovereign debt crisis in the Mediterranean members of the euro, contagion to innocent bystanders, a fiscal train-wreck in the United States inflicted by malfunctioning domestic politics, a new oil price shock coming from conflict with Iran, and a hard landing in some emerging markets. This paper offers a whirlwind tour of historical precedents for these possibilities and other shocks as well: (1) financial crises (including sudden stops in the flow of capital to emerging markets, banking/real estate/equity crashes,and sovereign debt crises);(2)episodes currency instability,(3) recessions, and (4)commodity shocks (including sudden increases in oil or food prices).Political causes and effects of the economic shocks are considered and the connections with longer term trends such as the rise and fall of powers Getting domestic policies right can often do more for a country’s international standing than the application of military power.This includes loyalty to one’s own ideals, responsible fiscal policy, anticipation of possible shocks, and competent responses to new developments.The record so far this century is not good.

کلیدواژه ها:

Economy under Sanctions ، financial crises ، policy ، price shock