Congressional Politics of International Financial Rescues

J. Lawrence Broz

American Journal of Political Science, 2005, vol. 49, issue 3, 479-496

Abstract: In the 1990s, the American executive organized financial rescues for Mexico and several Asian economies. These rescues were controversial in Congress, where members voted repeatedly to reduce or eliminate the executive's freedom to engage in them. I analyze these roll calls with an eye toward explaining who opposes and who supports international financial rescues. I argue that the interests of private actors (district constituencies and interest groups) have an important effect on member voting. Following Stolper‐Samuelson reasoning, I find that a member is significantly more likely to favor (oppose) rescues as the proportion of high‐skilled (low‐skilled) workers in a district increases. In addition, I find that campaign contributions from international banks increase the probability that a member will vote in favor of rescues. Overall, the findings suggest that the distributional effects of rescues find expression in Congress and constrain U.S. international financial policymaking.

Date: 2005
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

Downloads: (external link)
https://doi.org/10.1111/j.1540-5907.2005.00137.x

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:wly:amposc:v:49:y:2005:i:3:p:479-496

Access Statistics for this article

More articles in American Journal of Political Science from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().