The timing of inflation stabilization plans

• Autor(a) principal: Veiga, Francisco José
• Data de Publicação: 1999
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/1822/1418

In some new political economic models, delays of stabilizations generally result from some sort of coordination problem caused by the mechanisms of making collective choices. Although several authors have tested the effects of political instability and fragmentation on seigniorage, deficits, or inflation, no direct tests of the influence of these factors on the timing of stabilizations have been undertaken. This is what I try to accomplish here with the use of a duration model. Empirical results identify the degree of fragmentation of the political system and the level of inflation as important determinants of the timing of inflation stabilizations.