In this article, we argue that the effectiveness of central bank independence and exchange-rate pegs in solving credibility problems is contingent on two factors: political institutions and information asymmetries. However, the impact of these two factors differs. We argue that the presence of...

There are reasons to believe that establishing a monetary union might either strengthen or weaken fiscal discipline in member states. The same could be said for the establishment of an exchange rate peg with full convertibility. I ask why neither of these two mechanisms has promoted fiscal...

Recent research has demonstrated a negative link between macroeconomic and political uncertainty and levels of private investment across countries. This raises the question whether certain types of government institutions might help reduce this uncertainty. North and Weingast (1989) propose that...

Recent theoretical and empirical work has demonstrated a clear negative link between macroeconomic and political uncertainty and levels of private investment across countries. This result raises the question what institutions might help reduce this uncertainty, in particular by allowing host...

While it is generally recognized that electoral competition can have a major influence on public spending decisions, there has been little effort to consider whether the move to multiparty elections in African countries in recent years has led to a redistribution of public expenditures between...