Political Instability and Inflation Volatility

NIPE Working Paper No. 2/2006

11 Pages Posted: 11 May 2006

See all articles by Ari Aisen

Ari Aisen

International Monetary Fund (IMF) - Asia and Pacific Department; Central Bank of Chile

Francisco José Veiga

Universidade do Minho and NIPE

Multiple version iconThere are 3 versions of this paper

Date Written: April 2006

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.

Keywords: Inflation, volatility, political instability, institutions

JEL Classification: E31, E63

Suggested Citation

Aisen, Ari and Veiga, Francisco José, Political Instability and Inflation Volatility (April 2006). NIPE Working Paper No. 2/2006, Available at SSRN: https://ssrn.com/abstract=900538 or http://dx.doi.org/10.2139/ssrn.900538

Ari Aisen

International Monetary Fund (IMF) - Asia and Pacific Department ( email )

700 19th Street NW
Washington, DC 20431
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Central Bank of Chile ( email )

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Santiago
Chile

Francisco José Veiga (Contact Author)

Universidade do Minho and NIPE ( email )

Escola de Economia e Gestao
Campus de Gualtar
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+351 253 67 6375 (Fax)

HOME PAGE: http://www.eeg.uminho.pt/economia/fjveiga/english/fjveiga_english.html

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