Gatekeepers of Growth (ebook)

Argumento de Gatekeepers of Growth (ebook)

Central banks can shape economic growth, affect income distribution, influence a country's foreign relations, and determine the extent of its democracy. While there is considerable literature on the political economy of central banking in OECD countries, this is the first book-length study focused on central banking in emerging market countries. Surveying the dramatic worldwide trend toward increased central bank independence in the 1990s, the book argues that global forces must be at work. These forces, the book contends, center on the character of international financial intermediation. Going beyond an explanation of central bank independence, Sylvia Maxfield posits a general framework for analyzing the impact of different types of international capital flows on the politics of economic policymaking in developing countries.

The book suggests that central bank independence in emerging market countries does not spring from law but rather from politics. As long as politicians value them, central banks will enjoy independence. Central banks are most likely to be independent in developing countries when politicians desire international creditworthiness. Historical analyses of central banks in Brazil, Mexico, South Korea, and Thailand, and quantitative analyses of a larger sample of developing countries corroborate this investor signaling explanation of broad trends in central bank status.0Acknowledgments 1 Central Bank Independence: Why the Interest? 3 2 The Political Sources of Central Bank Independence 19 3 International Capital Flows and the Politics of Central Bank Independence 35 4 Central Bank Independence in the 1990s 50 5 The Politics of Changing Central Bank Authority: Thailand 71 6 The Politics of Changing Central Bank Authority: Mexico 91 7 The Politics of Changing Central Bank Authority: South Korea 107 8 The Politics of Changing Central Bank Authority: Brazil 121 9 Conclusion 138 Notes 151 Index 181