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Interest Groups And Exchange Rate Policy Choice In Brazil And Venezuela: Incorporating The Workers, James Suggett
Interest Groups And Exchange Rate Policy Choice In Brazil And Venezuela: Incorporating The Workers, James Suggett
Dissertations and Theses
Why did Brazil and Venezuela choose different exchange rate policies in 2003? Brazilian President Luiz Inácio “Lula” da Silva chose to maintain the managed float established by his predecessor; Venezuelan President Hugo Chávez chose to switch to a fixed exchange rate. Economic explanations typically consider structural factors drawn from Optimum Currency Area (OCA) theory as well as macroeconomic indicators such as level of reserves and inflation. Political explanations examine regime type, parliamentary structure, and interest groups. This study further explores the role of interest groups in determining exchange rate policy choice. Existing research on interest groups focuses primarily on major …