ABSTRACT
This conclusion presents some closing thoughts on the key concepts discussed in the preceding chapters of this book. The book summarizes the results of the statistical tests and the case studies for each of the hypotheses considered. It explains seven hypotheses concerning capital mobility, trade, gross domestic product, manufacturing, government transparency, elections, and financial intermediation. The hypothesis argues that a number of governments catered to the specific interests of their banks and/or feared a possible banking crisis. The book summarizes the implications for the development of theory in political economy. It details what implications the findings have for policy concerns. Exchange-rate crises occur for a number of reasons. The 1990s saw a number of crises in developing countries in which a foreign private investment boom was followed by a sudden panic of foreign investors, causing the exchange rate to plunge. The financial intermediation hypothesis also specifies a channel through which concerns about debt repayment can be articulated to the government.
