The Political Economy of Infaliton and Stabilization in Developing Countries

Sebastian Edwards

No 4319, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper deals with political aspects of inflation and stabilization in developing countries. it is argued that by ignoring political considerations. traditional models failed to fully understand the dynamics of inflation. Several newer models are discussed. including models based on strategic government behavior and war of attrition models. Empirical results obtained with developing countries data are discussed in detail. Data on Chile are used to test several versions of political business cycle models. It is found that this perspective helps explain the evolution of inflation through time in that country. Finally. data on a large cross section of countries are used to investigate the political-economy circumstances surrounding major devaluation crises.

JEL-codes: F41 (search for similar items in EconPapers)
Date: 1993-04
Note: IFM
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Published as in Economic Development and Cultural Change, 42(2), January 1994, 235-266.

Downloads: (external link)
http://www.nber.org/papers/w4319.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:4319

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w4319

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().