Political Cycles and the Macroeconomy

"This book is an important achievement in Political Economy, by two of the most creative researchers in the field. The ideas here, developed over many years by Alesina and Roubini, have already stimulated considerable new research and important empiricalfindings. This book deserves a wide readership." -- Jeffrey D. Sachs, Director, Harvard Institute for International Development; Galen L. Stone Professor of International Trade, Department of Economics, Harvard University The relationship between political and economic cycles is one of the most widely studied topics in political economics. This book examines how electoral laws, the timing of elections, the ideological orientation of governments, and the nature of competition between political partiesinfluence unemployment, economic growth, inflation, and monetary and fiscal policy. The book presents both a thorough overview of the theoretical literature and a vast amount of empirical evidence. A common belief is that voters...