Year: 1990
Type: report
Abstract: EPIAINfl FISL IOLIcES flflTIc1 fli VDPfl cXXNIRIESIn this paper we investigate erririca1ly the determinants of inflation, seigniorage an fiscal deficits in develcpin xxntries.We first test the cçtixnal tation theory of inflation for a grip of 21 I1Xs.We fiixl that the inp1icaticz-of this theory is rejected for all t1e czxintries.We then pro to inplnt a rvther of tests based on the i political xziy aproadi to ]nacroecxrxillic policies: we deal with sai of the inp1icaticz of a credibility az repitation nx3e1, ar of a strataic goverrmEnt behavior ne1.We firx that the data supports the nxst isportant praiicticr of the political uuny view of fiscal policy.C*.ir asures of political instability ar political polarization play an inportant role in explainirg cross cx*mtxy differezres in seigniorage, inflation, verrznt borrcizg ar fiscal deficits.We eni by discussirq directions for futere researth.
DOI: 10.3386/w3493
Authors: Sebastian Edwards, Guido Tabellini
Language: English
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W1998137897