Neo-Mercantilism Law and Legal Definition

Neo-mercantilism is an economic theory that maximizes the benefits to and interests of a country such as higher prices for goods traded abroad, price stability, stability of supply, and expansion of exports with concomitant reduction of imports. It promotes exports, deters imports, and controls capital movement. The aim of neo-mercantilist policies is to increase the level of foreign reserves held by government; it allows more effective monetary policy and fiscal policy.