Book review: banking on democracy: financial markets and elections in emerging countries

In Banking on Democracy, Javier Santiso investigates the links between politics and finance in countries that have recently experienced both economic and democratic transitions. He focuses on elections, investigating whether there is a “democratic premium” — whether financial markets and investors tend to react positively to elections in emerging markets. This is an excellent assessment of the relationship between markets and elections in emerging economies, writes Ilana Rothkopf. While Santiso’s empirical studies are complex, he presents his findings in a manner that is accessible to readers of diverse academic and methodological backgrounds.