Monday, February 27, 2006Market influence in Mexico
In political science, there's a lot of debate regarding the ways in which "the market" (or globalization) affects policy outcomes, not only in developing but also developed nations. There's some general sense that the market potentially constrains policy options, though there's a lot of debate regarding the extent of those constraints. At least one political scientist has asked "the market" (or one segment of it) what it considers when evaluating investment opportunities in foreign markets.
Somehow, the policy preferences of the market get transmitted back to voters, politicians, or policy-makers. Maybe they see the market punish bad policy in other countries. Maybe they are warned by international financial institutions. Maybe the market warns them directly. This part of the causal chain is studied less often.
However, here's at least one example of how the market makes its policy preferences known in Mexico.
posted by Michelle @ 11:17 AM,