Currency Politics, Exchange Rates

Tough to do good new IPE work in this research agenda but still worth thinking about:

Top Picks:

• Broz, J. Lawrence, and Jeffry A. Frieden. 2001. “The Political Economy of International Monetary Relations.” Annual Review of Political Science 4(1): 317–43.

• Frieden, Jeffry A. 2016. Currency Politics: The Political Economy of Exchange Rate Policy. Princeton University Press.

• Bernhard, William, J. Lawrence Broz, and William Roberts Clark. 2002. “The Political Economy of Monetary Institutions.” International Organization 56(4): 693–723.

• Rey, H. 2015. “Dilemma Not Trilemma: The Global Financial Cycle and Monetary Policy Independence.”

• Eichengreen, Barry J. 1992. Golden Fetters: The Gold Standard and the Great Depression, 1919-1939. Oxford University Press.

Textbooks to help you think through the theory and history:

• Eichengreen, Barry. 2019. Globalizing Capital: A History of the International Monetary System. Princeton University Press. 

• Krugman, Paul R., and Maurice Obstfeld. 1991. International Economics: Theory and Policy. HarperCollins.

• Oatley, Thomas. 2022. International Political Economy. Routledge. 

Further Reading:

• Bernhard, William, J. Lawrence Broz, and William Roberts Clark. 2003. The Political Economy of Monetary Institutions: An International Organization Reader. MIT Press.

• Bernhard, William, and David Leblang. 1999. “Democratic Institutions and Exchange-Rate Commitments.” International Organization 53(1): 71–97.

• Broz, J. Lawrence. 2002. “Political System Transparency and Monetary Commitment Regimes.” International Organization 56(4): 861–87.

• Copelovitch, Mark S., and Jon CW Pevehouse. 2013. “Ties That Bind? Preferential Trade Agreements and Exchange Rate Policy Choice.” International Studies Quarterly 57(2): 385–99.

Newer Literature:

• Eichengreen, Barry, Arnaud Mehl, and Livia Chiţu. 2019. “Mars or Mercury? The Geopolitics of International Currency Choice.” Economic Policy 34(98): 315–63.

• II, James A. Morrison. 2021. England’s Cross of Gold: Keynes, Churchill, and the Governance of Economic Beliefs. Cornell University Press.

• Gulotty, Robert, and Dorothy Kronick. 2022. “The Arbitrage Lobby: Theory and Evidence on Dual Exchange Rates.” International Organization 76(1): 105–25.

• Schwartz, Herman Mark. 2019. “American Hegemony: Intellectual Property Rights, Dollar Centrality, and Infrastructural Power.” Review of International Political Economy 26(3): 490–519.

Optimal Currency Area Theory:

• Eichengreen, Barry. 1992. “Is Europe an Optimum Currency Area?” In The European Community after 1992, eds. Silvio Borner and Herbert Grubel. London: Palgrave Macmillan UK, 138–61. 

• McKinnon, Ronald I. 1963. “Optimum Currency Areas.” The American economic review 53(4): 717–25.

• Mundell, Robert A. 1961. “A Theory of Optimum Currency Areas.” The American economic review 51(4): 657–65.

Exchange Rate Regimes, Capital Controls:

• Neely, Christopher J. 1999. “An Introduction to Capital Controls.” Federal Reserve Bank of St. Louis Review 81(November/December 1999). 

• Singer, David Andrew. 2010. “Migrant Remittances and Exchange Rate Regimes in the Developing World.” American Political Science Review 104(2): 307–23.

• Walter, Stefanie. 2008. “A New Approach for Determining Exchange-Rate Level Preferences.” International Organization 62(3): 405–38.