The Political Economy of Infaliton and Stabilization in Developing Countries / Sebastian Edwards.

Format:

Book

Author/Creator:

Edwards, Sebastian.

Contributor:

National Bureau of Economic Research.

Series:

Working Paper Series (National Bureau of Economic Research) no. w4319.

NBER working paper series no. w4319

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 1993.

Summary:

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.

Notes:

Print version record

April 1993.