This book examines the relationship between free markets and democracy. It demonstrates how the implementation of even very painful free market economic reforms in Chile and Mexico have helped to consolidate democratic politics without at the same time engendering a backlash against either...

The dominant approaches to the study of capital account liberalization have highlighted institutional barriers to reform and have also demonstrated an important role for interdependence, or the diffusion of a policy innovation from one country to another, as a causal force. Our approach...