Exchange Rate Crises in Developing Countries - 9781138619647

Name: Exchange Rate Crises in Developing Countries - 9781138619647
Brand: Taylor & Francis

Taylor & Francis

According to many economists, the increasing mobility of capital across borders has made it more costly to peg exchange rates. This work is the first to theorize the role of bankers as a domestic interest group involved in exchange rate policy. > According to many economists, the increasing mobility of capital across borders has made it more costly to peg exchange rates. This phenomenon has contributed to some of the more famous examples of exchange rate crises in recent times, such as the Mexican peso crisis in 1994 and the Asian financial crisis in 1997. Yet despite the increasing costs of pegging in today's accelerated financial markets, some developing countries try to maintain a peg for as long as they can. This work is the first to theorize the role of bankers as a domestic interest group involved in exchange rate policy. It adds to our understanding of how interest groups affect economic policy in developing countries and explains why some of the largest and fastest growing.