Divested Interests: Globalization and the New Politics of Exchange Rates

Cleeland Knight Sarah
Additional contact information
Cleeland Knight Sarah: American University

Business and Politics, 2010, vol. 12, issue 2, 1-30

Abstract: The globalization of production and finance is responsible for much of the variation in political contestation over exchange rates since the end of Bretton Woods. On the one hand, globalization increases the salience of the policy decisions that affect exchange rates, as more firms and their workers engage more in international trade and compete more against imports. On the other hand, globalization offers firms a myriad of opportunities to manage their exchange rate risk, through operational and financial hedging. But hedging is available to only certain types of economic actors and in certain situations of exchange rate risk. In this way, globalization has redrawn traditional political cleavages on exchange rates. This argument is tested with an original survey of US firms, labor unions, and trade associations on their preferences and political activity on exchange rate policy.

Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://doi.org/10.2202/1469-3569.1297 (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:buspol:v:12:y:2010:i:2:n:3

Ordering information: This journal article can be ordered from
https://www.cambridg ... usiness-and-politics

DOI: 10.2202/1469-3569.1297

Access Statistics for this article

Business and Politics is currently edited by Vinod K. Aggarwal

More articles in Business and Politics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().