The scope and future of globalisation have been questioned for many years now. One obvious reason for this has been the rise in trade tensions, exemplified by the high-profile conflict between China and the United States. Trade conflicts of this kind ultimately stem from a basic contradiction: while global trade surpluses and deficits balance out, surplus countries typically accumulate savings, whereas deficit countries tend to accumulate debt. A fallacy of composition – the mistaken belief that what one actor can achieve at a given moment can be achieved by all actors at once – lies behind this state of affairs. It is not possible for every country to run a trade surplus simultaneously. Yet, attempts to do so are encouraged by the current international trade and monetary system.
For deficit countries, a possible individual response is to resort to unilateral measures, as the Trump II administration has done. However, this can trigger a spiral of retaliation, as it did in the 1930s and, to some extent, does now, thereby exacerbating the situation. Worse still, in the 2020s, we are witnessing the weaponisation of interdependence, the securitisation of commodity chains, and growing divisions between differently aligned blocs of states. Not only is this combination highly volatile, but it also impedes cooperative action at a time when the world confronts numerous existential challenges. It is, however, possible to establish behaviour-shaping rules and principles and create more suitable common institutions. An International Clearing Union (ICU) is a potentially constructive way forward.
This book, edited by Jamie Morgan and Heikki Patomäki, is a result of the Research Council of Finland-funded project “How to avoid tendencies toward trade wars? A multi-method study about institutional designs for an International Clearing Union (ICU)”, which ran from September 2021 to August 2025 and was led by Heikki Patomäki. This open-access book is available in both hardcover and paperback and can be downloaded from:
You are warmly welcome to attend both the seminar and the reception, where wine and other refreshments will be served!
You can also attend the book launch remotely:
Programme
Each slot includes a short presentation and time for discussion.
16.00–16.15
A short history of the idea and the main contents of the book
Jamie Morgan (editor), Leeds Beckett University
Heikki Patomäki (editor), University of Helsinki
16.15–16.30
Beyond monetary hegemony: Normative underpinnings of a global clearing union (chapter 8)
Konsta Kotilainen (contributor), University of Helsinki
16.30–16:45
Designing the rules and principles of the International Clearing Union: Past and present debated issues (chapter 9)
Adrien Faudot (contributor), Université Grenoble Alpes
16.45–17.00
Resolving the balance of payments problematic: Feasible reforms for the twenty-first century (chapter 5)
Lauri Holappa (contributor), The Finnish Centre for New Economic Analysis (UTAK)
Niina Kari (contributor), University of Helsinki
17:00–17:15
From crisis to global reform? Feasibility and scenarios of possible futures (chapter 7 and JPKE article)
Heikki Patomäki (contributor)
17:15–17:30
Concluding reflections and general discussion
Jamie Morgan
Reception and informal discussions continue until 18:00.