Demanding Devaluation , livre ebook

288

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English

Ebooks

2015

Écrit par
A. Steinberg David

Publié par
Cornell University Press

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288

pages

English

Ebooks

2015

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Obtenez un accès à la bibliothèque pour le consulter en ligne En savoir plus

Publié par

Cornell University Press

Date de parution

16 novembre 2015

Nombre de lectures

EAN13

9780801454257

Langue

English

Poids de l'ouvrage

4 Mo

Exchange rate policy has profound consequences for economic development, financial crises, and international political conflict. Some governments in the developing world maintain excessively weak and "undervalued" exchange rates, a policy that promotes export-led development but often heightens tensions with foreign governments. Many other developing countries "overvalue" their exchange rates, which increases consumers' purchasing power but often reduces economic growth. In Demanding Devaluation, David Steinberg argues that the demands of powerful interest groups often dictate government decisions about the level of the exchange rate.Combining rich qualitative case studies of China, Argentina, South Korea, Mexico, and Iran with cross-national statistical analyses, Steinberg reveals that exchange rate policy is heavily influenced by a country's domestic political arrangements. Interest group demands influence exchange rate policy, and national institutional structures shape whether interest groups lobby for an undervalued or an overvalued rate. A country's domestic political system helps determine whether it undervalues its exchange rate and experiences explosive economic growth or if it overvalues its exchange rate and sees its economy stagnate as a result.

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Publié par

Cornell University Press

Date de parution

16 novembre 2015

Nombre de lectures

EAN13

9780801454257

Langue

English

Poids de l'ouvrage

4 Mo

DEMANDING DEVALUATION

A volume in the series Cornell Studies in Money edited by Eric Helleiner and Jonathan Kirshner

A list of titles in this series is available at www.cornellpress.cornell.edu.

DEMANDING DEVALUATION Exchange Rate Politics in the Developing World

David A. Steinberg

CORNELL UNIVERSITY PRESS ITHACA AND LONDON

Cornell University Press gratefully acknowledges support from the College of Arts and Sciences, the Department of Political Science, and the Oregon Humanities Center, University of Oregon, which aided in the publication of this book.

All rights reserved. Except for brief quotations in a review, this book, or parts thereof, must not be reproduced in any form without permission in writing from the publisher. For information, address Cornell University Press, Sage House, 512 East State Street, Ithaca, New York 14850.

First published 2015 by Cornell University Press Printed in the United States of America

Steinberg, David A., 1980– author. Demanding devaluation : exchange rate politics in the developing world / David A. Steinberg. pages cm — (Cornell studies in money) Includes bibliographical references and index. ISBN 978-0-8014-5384-7 (cloth : alk. paper) 1. Foreign exchange rates—China—Political aspects. 2. Foreign exchange rates—Developing countries—Political aspects. I. Title. II. Series: Cornell studies in money.

HG3978.S74 2015 332.4'56—dc23

2014039460

Cornell University Press strives to use environmentally responsible suppliers and materials to the fullest extent possible in the publishing of its books. Such materials include vegetable-based, low-VOC inks and acid-free papers that are recycled, totally chlorine-free, or partly composed of nonwood ﬁbers. For further information, visit our website at www.cornellpress.cornell.edu.

Cloth printing

For Sarah

Contents

List of Figures List of Tables Acknowledgments List of Abbreviations

Introduction 1.A Conditional Preference Theory of Undervalued Exchange Rates 2.Cross-Country Patterns in Exchange Rate Policy and Preferences 3.Why China Undervalues Its Exchange Rate: The Domestic Politics of Currency Manipulation 4.The Political Appeal of Overvaluation: Industrial Interests and the Repeated Overvaluation of the Argentine Peso 5.Interests, Institutions, and Exchange Rates in South Korea, Mexico, and Iran Conclusion

Appendix: Author Interviews References Index

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118

163

218

235 239 265

Fîgures

0.1. Economic performance in China and Argentina, 1990–2006 2 0.2. Causal model 10 2.1. State-owned banks and undervalued exchange rates 62 2.2. Labor restrictions and undervalued exchange rates 65 2.3. State-owned banks and exchange rate preferences 69 2.4. Labor restrictions and exchange rate preferences 71 3.1. Exchange rate undervaluation in China, 1993–2007 90 3.2. Renminbi-dollar exchange rate, 1994–1996 98 3.3. Renminbi-dollar exchange rate, 2005–2009 106 4.1. Exchange rate overvaluation in Argentina, 1966–2012 129 5.1. Exchange rate undervaluation in South Korea, 1960–1979 168 5.2. Exchange rate overvaluation in Mexico, 1970–1995 183 5.3. Exchange rate overvaluation in Iran, 1955–1997 203 C.1. Trade and exchange rate protectionism in 2006 227

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Tabes

0.1. Exchange rate overvaluation in ﬁve developing regions 5 0.2. Summary statistics of the ﬁve cases 14 0.3. Case selection 15 1.1. Exchange rate preferences 36 1.2. Summary of interest group preferences 36 1.3. Characteristics of service and manufacturing ﬁrms 39 1.4. Summary of the argument 52 2.1. Summary statistics (time-series cross-sectional dataset) 57 2.2. Association between state-owned banks and undervalued exchange rates 61 2.3. Association between labor restrictions and undervalued exchange rates 64 2.4. Summary statistics (survey data) 67 2.5. Association between state-owned banks and exchange rate preferences 68 2.6. Association between labor restrictions and exchange rate preferences 71 2.7. Description of control variables 75 2.8. Regression results (time-series cross-sectional data) 76 2.9. Regression results (survey data) 77 3.1. Exchange rate politics in China, 1993–2009 92 4.1. Exchange rate politics in Argentina, 1966–2012 132 4.2. Obstacles to business in Argentina 157

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