The FREEDOM Framework: Linking Multi-Alignment Diplomacy to Macroeconomic Resilience in India

Dr. Senthilkumar Anantharaman

MPRA Paper from University Library of Munich, Germany

Abstract: This paper introduces the FREEDOM Framework—a strategic macroeconomic model that integrates India’s multi-alignment diplomacy with Milton Friedman’s monetarist principles. It argues that diplomatic capital, defined as the trust and credibility accumulated through diverse international partnerships, functions as a stabilizing economic resource. By mapping seven key dimensions—Foreign Exchange stability, Resource security, Export competitiveness, Expectations management, Deficit control, Open markets, and Monetary discipline—the framework demonstrates how India’s foreign policy choices directly influence macroeconomic outcomes such as inflation control, exchange rate stability, and growth resilience. Drawing on Friedman’s emphasis on expectations and credibility, the paper shows that India’s diplomatic engagements act as transmission channels for macroeconomic stability. Strategic energy diplomacy, diversified trade agreements, and multilateral credibility are shown to anchor inflation expectations, attract investment, and buffer external shocks. The FREEDOM compass metaphor positions diplomacy as a directional tool for navigating global volatility, reinforcing that foreign policy is not peripheral but central to economic strategy. Ultimately, the study offers a multidimensional lens for policymakers, suggesting that sustaining macroeconomic resilience in India requires not only internal discipline but also the strategic deployment of diplomatic capital as a modern complement to monetary policy

Keywords: Diplomatic Capital; FREEDOM Framework; Multi Alignment Strategy; Macroeconomic Resilience. (search for similar items in EconPapers)
JEL-codes: B22 B3 B31 E02 F50 (search for similar items in EconPapers)
Date: 2025-08-25
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