Meet the Producer: Exchange Rate Shocks, Media Salience, and the Legislative Importance of Economic Sectors in Argentina

Abstract

In the last 15 years, considerable efforts have been directed towards understanding how currency shocks affect the clout of economic actors. Little research, however, has studied how currency shocks affect the salience of key economic actors and their organizations among the public. In this article, we test for the effect of currency shock on the media salience and legislative importance of economic actors. We use a novel empirical design that (1) measures the level of media salience of 23 Labor, Rural, Business, and Financial Associations and (2) measures the targets of legislation initiated in key Congressional committees. Results show that currency shocks have moderate effects on the media salience of economic actors and more pronounced policy consequences, reflected on the legislative importance of key economic jurisdictions in Congress.