The Impact of Presidential Elections on Currency Values in Latin America

Sibley, Mike, Multinational Business Review

This paper employs event study methodology to investigate the impact of presidential elections on nominal currency values for a group of Latin American countries between 1980 and 1996. The results indicate that presidential elections are associated with a statistically significant decline in nominal currency values, which appears strongest around the time of inauguration. The results suggest that the stage of the political cycle in a country is an important factor influencing exchange rates and should be recognized when making trade and investment decisions.

INTRODUCTION

This paper examines the impact of presidential elections on nominal currency values for a group of …

Questia, a part of Gale, Cengage Learning. www.questia.com
Publication information: Article title: The Impact of Presidential Elections on Currency Values in Latin America. Contributors: Sibley, Mike - Author. Journal title: Multinational Business Review. Volume: 9. Issue: 2 Publication date: Fall 2001. Page number: 14+. © St. Louis University, John Cook School of Business, Boeing Institute of International Business Fall 2009. Provided by ProQuest LLC. All Rights Reserved.

This material is protected by copyright and, with the exception of fair use, may not be further copied, distributed or transmitted in any form or by any means.