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Political Instability and Inflation Volatility

Author

Abstract
The purpose of this paper is to empirically determine the causes of the worldwide diversity of inflation volatility. We show that higher degrees of political instability, ideological polarization and political fragmentation are associated with higher inflation volatility.

Suggested Citation

  • Ari Aisen & Francisco José Veiga, 2006. "Political Instability and Inflation Volatility," NIPE Working Papers 2/2006, NIPE - Universidade do Minho.
    • Handle: RePEc:nip:nipewp:2/2006
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Inflation; volatility; political instability; institutions.;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy

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