Demanding devaluation: exchange rate politics in the developing world

Exchange rate policy has profound consequences for economic development, financial crises, and international political conflict.

Some governments in the developing world maintain excessively weak and undervalued exchange rates, a policy that promotes export-led development but often heightens tensions with foreign governments.

Many other developing countries overvalue their exchange rates, which increases consumers' purchasing power but often reduces economic growth.

This book argues that the demands of powerful interest groups often dictate government decisions about the level of the exchange rate.