01804cas a2200253 a 4500 AALejournalIMF000850 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451846539 1018-5941 BD-DhAAL BD-DhAAL Mulder, Christian. Political Instability and Economic Vulnerability / Christian Mulder, Matthieu Bussiere. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper analyzes and tests the influence of political instability on economic vulnerability in the context of the 1994 and 1997 crises episodes. It constructs four political variables that aim at quantifying political instability. The paper finds that for countries with weak economic fundamentals and low reserves, political instability has a strong impact on economic vulnerability. The estimation results suggest that including political variables in economic models does improve their power to explain and predict economic crises. The paper concludes that countries are more economically vulnerable during and especially following election periods, and when election results are less stable than at other times. Mode of access: Internet Bussiere, Matthieu. IMF Working Papers; Working Paper ; No. 1999/046 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/046/001.1999.issue-046-en.xml IMF e-Library