IfW Kiel in den Medien

Sanctions coalitions: Stronger together


... Although countries increasingly expend diplomatic capital to enlarge coalitions when implementing sanctions, the effectiveness of coordinating sanctions is not yet well understood. This column examines the impact of such coalitions on the economic cost and deterrent power of sanctions, focusing on the 2012 Iran and 2014 Russia sanctions. Drawing on recent work that estimates and simulates a quantitative general equilibrium trade model, the authors show that these coalitions serve a dual purpose – they reduce the average domestic welfare losses borne by coalition members while deepening welfare losses for the sanctioned state. ...

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