Latin American Economic Crises and Populist Bids: Argentina, Brazil and Mexico

Abstract

AbstractThrough a comparative case study analysis, the chapter seeks to retrace the recent history of Argentina, Brazil and Mexico in dealing with economic crises. Despite their different institutional arrangements and macroeconomic trajectories, the comparison shows that domestic concerns were the main drivers of economic policies. Particularly regarding each country’s approaches to exchange markets and capital controls—here called financial policy—the chapter evaluates the extent to which they contradict international perceptions and even the International Monetary Fund’s (IMF’s) stance on financial regulation and the management of capital flows. A close relationship between domestic political demands and the design of economic policy indicated that even in the face of some similarity between the challenges posed to the three countries and more than responses to changes in the world economy and the quest to keep these economies integrated, economic policy aimed to accommodate internal political pressures.