We examine whether sectional interest groups influence monetary policy goals in a manner consistent with their interests as distributive coalitions. In particular, we explore whether bank groups and labor groups are associated with the incidence of inflation targeting by the central bank....

Foreign aid is often granted to encourage market-oriented reform. It is not clear that this approach to reform has been effective. We seek to understand this seeming failure of aid. We ask whether and how political markets for institutions have influenced the impact of aid allocations on reform,...

Employing a political economy perspective, we seek to understand the seeming failure of aid to promote institutional reform. A la Stigler's theory of regulatory capture, we suppose that institutions are determined via a process of exchange and that special interest groups may capture...