Abstract

This paper intends to show that the changes that occurred in the international
capital movements and monetary relations have transformed the domestic political economies
resulting in changes that have transformed the international political economy. Especially
considering the United States, the author argues that the international economic
hegemony of U.S., after the World War Two, was based on three principal elements: massive
outflows of long-term capital, a commitment to stabilizing the international monetary system,
and commercial liberalization. These three elements had initially broad support, both
inside and outside the United States. However, when the financial and commercial openness
gradually changed the domestic economic orders, the political support for hegemonic stability
eroded. For the author, the battle decided there will determine the very character of the
U.S. and the international political economy for the foreseeable future.

JEL Classification: F38; F32.