The Political Economy of Currency Choice
This introductory chapter begins with discussions of currency choices, currency trade-offs, politics of currency policy, currency policies in open and closed economies, and currency politics applied across time and space. It then sets out the book's purpose, which is to analyze the politics of exchange rates. The book has both theoretical and empirical ambitions. Theoretically, it focuses on identifying the distributionally motivated currency policy preferences of economic actors—firms, industries, and groups. Empirically, it evaluates the accuracy of its theoretical arguments in a variety of historical and geographic settings. From a historical perspective, it looks at the politics of the gold standard, particularly in the United States. In a more contemporary mode, it examines the political economy of the process of European monetary integration. It also analyzes the politics of Latin American currency policy over the past forty years.
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