In this paper we confirm the hypothesis that central bank independence reforms reduce the likelihood that a central bank governor will be replaced. However, the strength of this effect depends on the rule of law and the degree of political polarization.

We test the hypothesis that governments facing popular protest are more likely to use fiscal policy for re-election purposes, employing data of 65 democratic countries–both developed and developing–over the period 1975–2005. Using the number of anti-government demonstrations and general...