01832cas a2200253 a 4500 AALejournalIMF003449 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451860689 1018-5941 BD-DhAAL BD-DhAAL Aisen, Ari. Does Political Instability Lead to Higher Inflation? : A Panel Data Analysis / Ari Aisen, Francisco Jose Veiga. Washington, D.C. : International Monetary Fund, 2005. 1 online resource (15 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 Economists generally accept the proposition that high inflation rates generate inefficiencies that reduce society's welfare and economic growth. However, determining the causes of the worldwide diversity of inflationary experiences is an important challenge not yet satisfactorily confronted by the profession. Based on a dataset covering around 100 countries for the period 1960-99 and using modern panel data econometric techniques to control for endogeneity, this paper shows that a higher degree of political instability is associated with higher inflation. The paper also draws relevant policy implications for the optimal design of inflation-stabilization programs and of the institutions favorable to price stability. Mode of access: Internet Veiga, Francisco Jose. IMF Working Papers; Working Paper ; No. 2005/049 Full text available on IMF http://elibrary.imf.org/view/journals/001/2005/049/001.2005.issue-049-en.xml IMF e-Library