autarky

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autarky

1. (esp of a political unit) a system or policy of economic self-sufficiency aimed at removing the need for imports
2. an economically self-sufficient country

autarky

or

autarchy

the practice or policy of economic self-sufficiency

Autarky

 

self-sufficiency, self-satisfaction; in the economic sense, the creation of a closed, self-sufficient economy in a separate capitalist country, leading to a break in traditional international economic ties.

In a pure form, autarky existed only in precapitalistic formations in a natural economy. Autarky as a policy is in conflict with the demands of the international division of labor. Under imperialism, when all countries are closely connected by a system of international economic relations, there are only tendencies toward autarky, arising as a result of the intensification of the contradictions of capitalism. These tendencies were most powerful during the 1930’s when, as a result of the world economic crisis of 1929–33, a break occurred in the previously existing foreign trade and other economic relationships, and countries conducted a policy of “ruining their neighbor.” In the most aggressive imperialistic countries autarky began to serve the aims of creating a relatively closed economy capable of producing all that was necessary for conducting a war under the conditions of economic blockade. Autarky was the official economic theory of Fascism. After World War II autarkic tendencies—for instance, high obstructive duties—are to some degree inherent in several closed trade economic blocs such as the European Economic Association and the European Association for Free Trade.

V. V. MOTYLEV

References in periodicals archive ?
We start with the final equations of the closed economy version of the model presented by Clarida, et al.
Nevertheless, we argue that such an identification scheme, useful as it may be for a closed economy, is not suitable for identifying monetary policy shocks of a small open economy.
Overall, this study confirms, for the open economy context, the results on euro- area inflation dynamics obtained in Paloviita (2006) for the closed economy.
Since we assume a closed economy, the relative prices of goods are determined endogenously.
The 73- year-old politician, who ran a closed economy as the finance minister in Indira Gandhi's cabinet from 1982 to 1984, returned to the ministry this year after serving as the defense and foreign minister during the bulk of Singh's first five-year term.
In a closed economy, even with two players (a fiscal authority and a monetary authority--a central bank), the only way to affect inflation is to shift output relative to its natural rate.
China, though supposedly keen to promote the yuan as an alternative to the dollar, is still partly a closed economy for outside investors.
What was then a closed economy - errantly trying to rely on only its own finite resources - --is now our 14th largest trading partner with the potential to become one of our largest and most diverse commercial allies in the world," Blake said.
We now turn to an open-economy world with a small-open Home economy and the rest of countries, which have identical economic structures to the above closed economy.
An Aggregative Theory for a Closed Economy," in Monetarism, edited by Jerome L.
While being an early advocate of opening up India s still relatively closed economy, he is adamant that "India cannot pollute its way to prosperity.
Discussant Charles Jones (University of California-Berkeley) extends the argument by observing in the late twentieth century there was much less income divergence between the open economies than between the closed economies: perhaps all open economies resemble one another, but each closed economy is closed in its own way.