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Does democracy foster financial development? An empirical analysis

✍ Scribed by Benhua Yang


Book ID
116422940
Publisher
Elsevier Science
Year
2011
Tongue
English
Weight
190 KB
Volume
112
Category
Article
ISSN
0165-1765

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Fighting Inflation in Developing Countri
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Using the date of independence as an instrument for democratic institutions, and data over the period 1960-2003, I find a positive and significant effect of democracy on inflation in a sample of 62 developing countries. Democracy increases inflation because democracy stimulates money creation and co