that allowing politicians to raise debt ensures that the reform is always implemented when the reform’s ratio of private … when the reform’s ratio of private good to public good gains is below this threshold. We also examine hard and a soft debt …. In the first period, the politicians propose both whether to experiment with an efficient reform with uncertain benefits …

This paper develops a dynamic framework to analyze the political sustainability of economic reforms in developing … countries. First, we demonstrate that economic reforms that are proceeding successfully may run into a political impasse, with … the reform's initial success having a negative impact on its political sustainability. Second, we demonstrate that greater …

concern the quantitative relevance of the feedback and interaction effects between the two kinds of reforms. First, we find … positive feedback effects between economic and political reforms. The timing of events indicates that causality is more likely … directions. Second, the sequence of reforms matters. Countries that first liberalize and then become democracies do much better …

, hyperinflation in Germany after World War I, inflation in Argentina since the 1980s, currency reform in Germany after WW II, and …

analyse the role of private restructuring and public structural reforms for the urgently needed readjustment of intra …-euro area imbalances. A panel regression reveals a significant impact of private restructuring and public structural reforms on … intra-euro area competitiveness. This implies that private restructuring and public reforms are rather than public transfers …