U.S. Foreign Economic Policy and the Significance of the National Economic Council

Abstract

Research demonstrates that the National Economic Council (NEC) and the decision-making process through which economic issues must pass are essential components in the evolution of American foreign economic policy. This article will examine the functions and responsibilities of the NEC in the making of U.S. foreign economic policy under Presidents Bill Clinton and George W. Bush. It selects key policies, namely international monetary policy, fiscal policy, and trade liberalization, and examines key issues within each in order to provide tentative answers to questions regarding foreign economic policy and the emergence and development of the NEC. Also, this article supplies an overview of the large body of research on international economics and foreign economic policy. Furthermore, it identifies key U.S. foreign economic policy issues developed and coordinated by the NEC. The article concludes with a discussion of to what extent the NEC is a significant development in U.S. foreign economic policy and in the making of foreign policy.