For decades, policymakers have relied on economic sanctions (both their imposition and the prospect of their removal), as well as other types of economic statecraft, such as export controls and restrictions on foreign investments. While sanctions have more obvious coercive purposes, a broad range of economic instruments could be aimed at other states in order to change their behavior. However, the use (and overuse) of economic instruments for coercive and signaling purposes may be strategically unsound—not only because it often does not work, but also because of the long-term consequences.
