Currency Politics

A comprehensive analysis of the politics surrounding exchange rate policies in the global economy—with in-depth case studies.

The exchange rate is the most important price in any nation’s economy, and a central factor in the global economy. Despite the critical role of exchange rate policy, there are few definitive explanations of why governments choose the currency policies they do. In Currency Politics, Jeffrey Frieden combines narrative and statistical investigation to offer an enlightening analysis of exchange rate policies around the world.

Many industries seek to influence politicians on currency policy. Frieden shows how each industry’s characteristics—including its exposure to currency risk and the price effects of exchange rate movements—determine their policy preferences. Frieden then evaluates the accuracy of his theoretical arguments in a variety of historical and geographical settings. He looks at the politics of the gold standard, particularly in the United States, and he examines the political economy of European monetary integration.

Frieden also analyzes the politics of Latin American currency policy over the past forty years, and focuses on the daunting currency crises that have frequently debilitated Latin American nations, including Mexico, Argentina, and Brazil.