This article examines the relationship between government popularity and exchange rate movements in Britain since 1987. It argues that: (1) unexpected drops in the government's public support lead to currency depreciations and increased exchange rate volatility, and (2) unanticipated...

Over the past two decades foreign direct investment (FDI) has become as important as, if not more important than, international trade in the global economy. FDI constitutes a major source of capital, particularly in developing countries, where FDI inflows as a share of GDP rose from only 10% in...