This study uses a sample of 34 disinflations undertaken by thirteen Latin American and Caribbean (LAC) nations to test if political institutions impact the cost of policy induced disinflations. We find, after controlling for several of the most important covariates in the literature, that...

The monetary disturbance theory of the Depression, explained by Friedman and Schwartz (1963) asserts that the Depression was so deep and long because the Federal Reserve pursued a tight monetary policy. More recently, Bernanke (1983) has shown that financial market crisis also lowered output in...

This study uses a sample of 34 disinflations undertaken by thirteen Latin American and Caribbean (LAC) nations to test if political institutions impact the cost of policy induced disinflations. We find, after controlling for several of the most important covariates in the literature, that...