McDowell study on fiscal sanctions, international currency published

Daniel McDowell 2018Daniel McDowell's article "Financial sanctions and political risk in the international currency system," was published in Review of International Political Economy. McDowell considers how U.S. financial sanctions generate political risk concerns that reduce the dollar's attractiveness as an international currency. This prompts some governments, especially those targeted by sanctions, to implement de-dollarization strategies designed to reduce their economies' reliance on the currency. The study suggests that policymakers should carefully weigh the downsides of sanctions as a foreign policy tool. 03/12/20