Globalization and Austerity Politics in Latin America [Paperback]

The book explores the effect of financial globalization on Latin American economic policy-making.In an age of financial globalization, are markets and democracy compatible? The book explores the effect of financial globalization on Latin American economic policymaking. It investigates why left-leaning politicians from countries with high poverty and wage inequality often adopt conservative, market-oriented policies. Employing a multi-method research strategy that includes country studies from Argentina, Brazil, Chile, Ecuador, and Venezuela, the book investigates how relations between international creditors and national debtors affect economic policy choices. It finds that high bond market indebtedness and a history of inflation crises make austerity more likely, even during periods of political survival.In an age of financial globalization, are markets and democracy compatible? The book explores the effect of financial globalization on Latin American economic policymaking. It investigates why left-leaning politicians from countries with high poverty and wage inequality often adopt conservative, market-oriented policies. Employing a multi-method research strategy that includes country studies from Argentina, Brazil, Chile, Ecuador, and Venezuela, the book investigates how relations between international creditors and national debtors affect economic policy choices. It finds that high bond market indebtedness and a history of inflation crises make austerity more likely, even during periods of political survival.In an age of financial globalization, are markets and democracy compatible? For developing countries, the dramatic internationalization of financial markets over the last two decades deepens tensions between politics and markets. Notwithstanding the rise of left-leaning governments in regions like Latin America, macroeconomic policies often have a neoliberal appearance. When is austerity imposed externally and when is it a domestic political choice? By col-