The International Political Economy Yearbook will be published annually under the sponsorship of the International Political Economy Section of the International Studies Association at the Department of Political Science, Brigham Young University. The intent of the series is to describe and explain the structure and the dynamic operation of the international political economy and to explore their political, social, and economic impact on different countries, be they advanced market economies, newly industrializing countries, or underdeveloped countries. This first volume is an overview of the policy and research field of international political economy studies. It explores what international political economy is; what approaches and theories might broaden and deepen our understanding of the phenomena addressed; what perspectives seem inappropriate or misdirected; and why neither international relations scholars nor mainstream economists can any longer claim status as senior partners in the community of scholars and policymakers interested in these issues. It also addresses major policy problems confronting both advanced and developing countries, including commodity trade, foreign investment, regulation of multinational corporations, food shortages and other development problems, industrial crises in the United States and Europe, international debt, and the increased role of the state in different economies.

More than two years ago the European Central Bank (ECB) adopted a negative interest rate policy (NIRP) to achieve its price stability objective. Negative interest rates have so far supported easier financial conditions and contributed to a modest expansion in credit, demonstrating that the zero lower bound is less binding than previously thought. However, interest rate cuts also weigh on bank profitability. Substantial rate cuts may at some point outweigh the benefits from higher asset values and stronger aggregate demand. Further monetary accommodation may need to rely more on credit easing and an expansion of the ECB’s balance sheet rather than substantial additional reductions in the policy rate.