The Politics of Market Discipline in Latin America: Globalization and Democracy
Cambridge University Press
Edition: Illustrated, 4/16/2015
EAN 9781107039254, ISBN10: 1107039258
Hardcover, 254 pages, 22.9 x 15.2 x 1.6 cm
Language: English
The Politics of Market Discipline in Latin America uses a multi-method approach to challenge the conventional wisdom that financial markets impose broad and severe constraints over leftist economic policies in emerging market countries. It shows, rather, that in Latin America, this influence varies markedly among countries and over time, depending on cycles of currency booms and crises exogenous to policy making. Market discipline is strongest during periods of dollar scarcity, which, in low-savings commodity-exporting countries, occurs when commodity prices are high and international interest rates low. In periods of dollar abundance, when the opposite happens, the market's capacity to constrain leftist governments is very limited. Ultimately, Daniela Campello argues that financial integration should force the Left toward the center in economies less subject to these cycles, but not in those most vulnerable to them.
1. Globalization, democracy, and market discipline
2. Between votes and capital
redistribution and uncertainty in unequal democracies
3. Investors' 'vote' in presidential elections
4. The politics of currency booms and crises
explaining the influence of the investors' 'vote'
5. Currency crisis, policy switch, and ideological convergence
presidential elections in Brazil
6. Exogenous shocks and investors' political clout
presidential elections in Ecuador
7. Controlling for incumbency
financial markets' influence in Chávez's Venezuela
8. 'Vivir con lo nuestro'
default and market discipline in Argentina
9. Who governs?
market discipline in the developed world
10. Conclusion.