Financial Globalization and Democracy in Emerging Markets

When Mexico''s peso crisis occurred in December 1994, all of Latin America experienced the ''tequila effect''. In January 1998, after seven months of financial turmoil in East Asia, Alan Greenspan, the usually reticent Chairman of the US Federal Reserve Bank, noted that such ''vicious cycles...may, in fact, be a defining characteristic of the new high-tech international financial system''. This bo...