Debt.

Again and again, Latin America has seen the populist scenario played to an unfortunate end. Upon gaining power, populist governments attempt to revive the economy through massive spending. After an initial recovery, inflation reemerges and the government responds with wage an price controls. Shortages, overvaluation, burgeoning deficits, and capital flight soon precipitate economic crisis, with a subsequent collapse of the populist regime. The lessons of this experience are especially valuable for countries in Eastern Europe, as they face major political and economic decisions. Economists and political scientists from the United States and Latin America detail in this volume how and why such programs go wrong and what leads policymakers to repeatedly adopt these policies despite a history of failure. Authors examine this pattern in Argentina, Brazil, Chile, Mexico, Nicaragua, and Peru—and show how Colombia managed to avoid it. Despite differences in how each country implemented its policies, the macroeconomic consequences were remarkably similar. Scholars of Latin America will find this work a valuable resource, offering a distinctive macroeconomic perspective on the continuing controversy over the dynamics of populism.

As President Carter?s ambassador to Nicaragua from 1977?1979, Mauricio Sola£n witnessed a critical moment in Central American history. In U.S. Intervention and Regime Change in Nicaragua, Sola£n outlines the role of U.S. foreign policy during the Carter administration and explains how this policy with respect to the Nicaraguan Revolution of 1979 not only failed but helped impede the institutionalization of democracy there. Late in the 1970s, the United States took issue with the Nicaraguan dictator Anastasio Somoza. Moral suasion, economic sanctions, and other peaceful instruments from Washington led to violent revolution in Nicaragua and bolstered a new dictatorial government. A U.S.-supported counterrevolution formed, and Sola£n argues that the United States attempts to this day to determine who rules Nicaragua. Sola£n explores the mechanisms that kept Somoza?s poorly legitimized regime in power for decades, making it the most enduring Latin American authoritarian regime of the twentieth century. Sola£n argues that continual shifts in U.S. international policy have been made in response to previous policies that failed to produce U.S.- friendly international environments. His historical survey of these policy shifts provides a window on the working of U.S. diplomacy and lessons for future policy-making.