The article by John Gerard Ruggie explores the evolution of international economic regimes, particularly those related to money and trade, since World War II. Ruggie argues that these regimes reflect and influence the international economic order, which he terms "embedded liberalism." He critiques the prevailing model that attributes regime change primarily to the rise or fall of economic hegemons, suggesting that power and social purpose are equally important factors. Ruggie's analysis is grounded in the idea that international regimes are social institutions that shape state behavior and expectations, much like language shapes communication. He emphasizes the need to understand the underlying principles and norms that govern these regimes, rather than focusing solely on their instrumental aspects. Ruggie's three main arguments are: 1. **The Structure of International Authority**: He argues that international authority is a fusion of power and legitimate social purpose, which has evolved over time. The postwar international economic order, characterized as "embedded liberalism," reflects this fusion but differs from both classical liberalism and mercantilism. 2. **The Relationship Between Regimes and International Transactions**: Ruggie contends that international economic regimes provide a permissive environment for specific types of international transaction flows, which actors perceive as complementary to the regime's underlying power and purpose. This relationship is one of complementarity, not determinism. 3. **Change in Regimes**: He suggests that changes in international regimes are not solely driven by the rise or fall of economic hegemons but can also result from shifts in the balance between power and social purpose. In the post-1971 period, many changes in the regimes for money and trade were norm-governed, reflecting adaptive adjustments rather than a collapse of Bretton Woods. Ruggie's analysis is supported by historical examples, such as the shift from the pre-World War I gold standard to the interwar period, and the postwar reconstruction of international economic institutions. He concludes that the postwar international economic order, characterized as "embedded liberalism," represents a compromise between multilateralism and domestic interventionism, reflecting the evolving balance between state and market in the context of global interdependence.The article by John Gerard Ruggie explores the evolution of international economic regimes, particularly those related to money and trade, since World War II. Ruggie argues that these regimes reflect and influence the international economic order, which he terms "embedded liberalism." He critiques the prevailing model that attributes regime change primarily to the rise or fall of economic hegemons, suggesting that power and social purpose are equally important factors. Ruggie's analysis is grounded in the idea that international regimes are social institutions that shape state behavior and expectations, much like language shapes communication. He emphasizes the need to understand the underlying principles and norms that govern these regimes, rather than focusing solely on their instrumental aspects. Ruggie's three main arguments are: 1. **The Structure of International Authority**: He argues that international authority is a fusion of power and legitimate social purpose, which has evolved over time. The postwar international economic order, characterized as "embedded liberalism," reflects this fusion but differs from both classical liberalism and mercantilism. 2. **The Relationship Between Regimes and International Transactions**: Ruggie contends that international economic regimes provide a permissive environment for specific types of international transaction flows, which actors perceive as complementary to the regime's underlying power and purpose. This relationship is one of complementarity, not determinism. 3. **Change in Regimes**: He suggests that changes in international regimes are not solely driven by the rise or fall of economic hegemons but can also result from shifts in the balance between power and social purpose. In the post-1971 period, many changes in the regimes for money and trade were norm-governed, reflecting adaptive adjustments rather than a collapse of Bretton Woods. Ruggie's analysis is supported by historical examples, such as the shift from the pre-World War I gold standard to the interwar period, and the postwar reconstruction of international economic institutions. He concludes that the postwar international economic order, characterized as "embedded liberalism," represents a compromise between multilateralism and domestic interventionism, reflecting the evolving balance between state and market in the context of global interdependence.