Political Risk and the Currency Markets: A Look at How the Structure of Government Impacts Exchange Rates in Emerging and Developing Economies

Authors

Aaron Gifford, Brigham Young University
Dr. Joel Selway, Brigham Young University

Keywords

political risk, currency markets, exchange rates, developing economies

College

Family, Home, and Social Sciences

Department

Political Science

Abstract

For the last three years, the world has seen dramatic changes in the global economy. What began as a local failure of a couple banks and the deterioration of innovative financial products in the U.S. soon spread to other nations around the world. While most countries have had to suffer these wide-spread effects, some have been able to adapt to economic problems more easily and quickly than others, successfully leading their country out of financial distress. The major contributors to this success have largely been government-related. Swift financial intervention and robust economic legislation have helped these nations recover faster than those that followed other courses of action.

Recommended Citation

Gifford, Aaron and Selway, Dr. Joel (2013) "Political Risk and the Currency Markets: A Look at How the Structure of Government Impacts Exchange Rates in Emerging and Developing Economies," Journal of Undergraduate Research: Vol. 2013: Iss. 1, Article 446.
Available at: https://scholarsarchive.byu.edu/jur/vol2013/iss1/446