Policy Of The US Financial Diplomacy

Financial diplomacy is an old international political and economic phenomenon ininternational relations. It is a product of economic globalization and the continuedintegration of international relations, its core is the relationship between finance andpolitics. As a part of the overall diplomacy, it is an important supplement of politicaland military diplomacy, an important tool which to ensure the national interests couldbe achieved.The United States is the country which use the financial diplomacy most frequentlyand skilled in the world. In the US financial diplomacy towards Japan and China, theUnited States have adopted a strategy of attacking aspirations that rooted in the basis ofthe U.S. dollar hegemony on the world economy and imbalance possession on thefinancial resources. Thanks to that, Financial diplomacy has became the secret weaponto dominate the global economy.This paper argues that the U.S. financial foreign policy not only rooted in thehistory of U.S. foreign policy, also in its political ideology and social system culture. Itis different with the general sense of foreign policy, the financial diplomacy involvesmostly domestic and international cross-cutting issue, so the process of policyformulation and implementation is more complex. From the international perspective,the draft of financial foreign policy should not only consider the changes ofinternational power setup in force, also the extent interdependence between countries.From the domestic perspective, the financial diplomacy policies not only restricted bythe president, Congress, the administrations but also effected by interest group politics,media, think tanks, public opinion and other indirect factors. The U.S. financial foreignpolicy is a result of the balance of multiple interests which made under the internationaland domestic level.