Document Type : Research Paper

Authors

• mohammad meisam mirfendereski ¹
• alimorad sharifi ²
• shahram moeeni ²

¹ Ph.D. in Economics, University of Isfahan

² isfahan university

Abstract

The populist and irresponsible fiscal and monetary policies of populist leaders and governments, although satisfying and pacifying the masses in the short term, have imposed irreparable complications and costs on the economies of developing countries in the long run. Rapid and rampant inflation has been a clear consequence of the rule of populist leaders in recent decades, especially in Latin American countries. In this study, the effect of populist policies on the inflation rate in 12 periods of the rule of populist leaders in 11 developing countries has been analyzed using panel data. Thus, three models for right-wing, left-leaning governments, and the entire research sample during the period 1990-2023 have been used to investigate the research hypothesis. The results of estimating the models show that the populist coefficients, for all three models, have a sign consistent with the expectation (positive) and significant. Also, these coefficients for leftist governments show a greater value than for right-wing governments, which indicates the more destructive effect of populist policies on leftist governments.

Keywords

• Fiscal and Monetary Policy
• Populism
• Inflation Rate
• Developing Countries
• Panel Data

Main Subjects

• Public Sector Economics