We develop an overlapping generations (OLG) monetary endogenous growth model characterized by socio-political instability, with the latter being specified as a fraction of output lost due to strikes, riots and protests. show that dynamics arise in this when instability is function inflation. In particular, two distinct emerge, one convergent other divergent contingent on strength response Since...

The most recent generation of currency and nancial crisis literature blames the borrowing decisions of real and nancial sector actors; in particular, it argues that the de facto dollarization of liabilities is inherently risky and can trigger a host of economic ills that impede economic development. This paper presents and tests an institutional theory of de facto nancial dollarization. It argu...

An unstable macroeconomic environment is often regarded as detrimental to economic growth. Among the sources contributing to such instability, the literature has assigned most of the blame to political issues. This paper empirically tests for a causal and negative long-term relation between political instability and economic growth, but finds no evidence of such a relationship. Sensitivity anal...

Abstract Tax is a financial charge imposed on individuals by state in different forms like direct tax paid directly by individuals, indirect tax collected by intermediaries and deposited to Government like sales tax. Taxation plays an important role in the process of revenue generation and to run various activities in an economy. The study empirically demonstrates various factors involved in di...

This paper uses a new data set that better measures inflation uncertainty to investigate the effects of inflation and inflation uncertainty on economic growth. In the cross section of forty-four countries that the new data allows, inflation uncertainty has a significant negative impact on economic growth. Uncertainty performs better than inflation crisis as an explanatory variable of economic g...

Formally speaking, political parties were formed only in 1881. However, they had been active in practice since the First Serbian Uprising. This article describes the development of political parties, their organization, and their mutual confrontations in the struggle for power. One clearly notices that the instability of the Serbian political scene started with the formation of the early politi...