Does Political Instability Lead to Higher Inflation? : A Panel Data Analysis /

Economists generally accept the proposition that high inflation rates generate inefficiencies that reduce society's welfare and economic growth. However, determining the causes of the worldwide diversity of inflationary experiences is an important challenge not yet satisfactorily confronted by...

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Autor principal: Aisen, Ari
Altres autors: Veiga, Francisco Jose
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2005.
Col·lecció:IMF Working Papers; Working Paper ; No. 2005/049
Accés en línia:Full text available on IMF
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245 1 0 |a Does Political Instability Lead to Higher Inflation? :   |b A Panel Data Analysis /  |c Ari Aisen, Francisco Jose Veiga. 
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490 1 |a IMF Working Papers 
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520 3 |a Economists generally accept the proposition that high inflation rates generate inefficiencies that reduce society's welfare and economic growth. However, determining the causes of the worldwide diversity of inflationary experiences is an important challenge not yet satisfactorily confronted by the profession. Based on a dataset covering around 100 countries for the period 1960-99 and using modern panel data econometric techniques to control for endogeneity, this paper shows that a higher degree of political instability is associated with higher inflation. The paper also draws relevant policy implications for the optimal design of inflation-stabilization programs and of the institutions favorable to price stability. 
538 |a Mode of access: Internet 
700 1 |a Veiga, Francisco Jose. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2005/049 
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