Sanctions are now a central tool of governments’ foreign policy. This column examines the extraterritorial impact of sanctions on trade and welfare, and finds that the big extraterritorial burden of sanctions falls on target countries, whose trade with third countries is reduced significantly. Surprisingly, trade between senders and third countries increases due to sanctions.
The use of economic sanctions as a foreign policy tool has increased sharply over the past decade. Drawing a comparison with the first sanction decade of the 1990s, this column analyses the drivers of the recent sanction wave and argues that the increased use of economic sanctions will be sustained in the foreseeable future.
Matthieu Crozet, Julian Hinz, Amrei Stammann, Joschka Wanner
Politics affects the banking sector in many ways (e.g. Calomiris and Huber 2014). For example, governments in many countries direct commercial bank lending to specific sectors and/or stimulate lending to small and medium-sized enterprises (e.g. Brown and Dinc 2005). And during the recent COVID-19 pandemic, many governments created emergency loan guarantee schemes that were covering and spurring their banks lending. In this column, we turn to another recent and striking episode of political impact, namely, the global financial sanctions on Russian banks with close ties to their domestic government that commenced in 2014 and were sequentially imposed on various banks during a five-year period. In general, economic sanctions become increasingly popular from 2010s, being mostly driven by the US to restrain politically unfavourable regimes (Felbermayr et al. 2021). While their effects at the firm level are well studied (Croz
The Global Sanctions Data Base : Mapping international sanction policies from 1950-2019 voxeu.org - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from voxeu.org Daily Mail and Mail on Sunday newspapers.