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Economic and Institutional Consequences of Populism

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  • Spilimbergo, Antonio
  • Magud, Nicolas

Abstract

We analyze the institutional and economic consequences of populism in Latin America in the last 50 years. Populist regimes weaken institutions and macroeconomic (fiscal, monetary, and external) indicators, resulting in crises and worse income distribution. The duration of populist regimes depends on favorable external conditions. In particular, the commodity super-cycle of the 2000s and easy financing conditions allowed populists to stay in power longer than in past episodes.

Suggested Citation

  • Spilimbergo, Antonio & Magud, Nicolas, 2021. "Economic and Institutional Consequences of Populism," CEPR Discussion Papers 15824, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:15824
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    Cited by:

    1. Manuel Funke & Moritz Schularick & Christoph Trebesch, 2023. "Populist Leaders and the Economy," American Economic Review, American Economic Association, vol. 113(12), pages 3249-3288, December.
    2. Anna Bottasso & Gianluca Cerruti & Maurizio Conti, 2022. "Institutions matter: The impact of the covid‐19 pandemic on the political trust of young Europeans," Journal of Regional Science, Wiley Blackwell, vol. 62(4), pages 1122-1148, September.

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    More about this item

    Keywords

    Political economy; Populism; Latin america; Institutions; Commodity supercycle;
    All these keywords.

    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General

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