IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/444.html
   My bibliography  Save this paper

The political economy of inflation and stabilization in middle-income countries

Author

Listed:
  • Haggard, Stephan
  • Kaufman, Robert

Abstract

In a number of middle-income developing countries, the severe inflationary crises of the 1980s coincided with political liberalization and an expansion of the arena of distributive politics. This wave of democratization raises questions that have recurred throughout the post-World War II period. This paper provides a comparative analysis of the politics of inflation and stabilization in seventeen Latin American and Asian countries, paying particular attention to social movements and governments that seek to mobilize the popular sector. The paper reviews the arguments linking political constraints to macroeconomic policy and inflation, especially the role that populism might play in propagating inflation. It examines the inflation histories of three groups of middle-income countries: those that have maintained relatively stable macroeconomic policies over the long-run; those that have periodically experienced severe difficulties, but managed to adjust; and those that experienced recurrent cycles of very high inflation over an extended period. The paper draws more extensively on case studies of particular inflation episodes to examine the conditions under which inflation has been brought down, paying particular attention to the effect of regime type on stabilization efforts.

Suggested Citation

  • Haggard, Stephan & Kaufman, Robert, 1990. "The political economy of inflation and stabilization in middle-income countries," Policy Research Working Paper Series 444, The World Bank.
  • Handle: RePEc:wbk:wbrwps:444
    as

    Download full text from publisher

    File URL: http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1990/06/01/000009265_3960929214007/Rendered/PDF/multi0page.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Levine, Ross & Renelt, David, 1991. "Cross-country studies of growth and policy : methodological, conceptual, and statistical problems," Policy Research Working Paper Series 608, The World Bank.
    2. Eugenio Diaz Bonilla & Hector E. Schamis, 1999. "The Political Economy of Exchange Rate Policies in Argentina," Research Department Publications 3078, Inter-American Development Bank, Research Department.
    3. Eugenio Diaz Bonilla & Hector E. Schamis, 1999. "La economía política de las políticas de cambio en Argentina," Research Department Publications 3079, Inter-American Development Bank, Research Department.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:444. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Roula I. Yazigi). General contact details of provider: http://edirc.repec.org/data/dvewbus.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.