This book considers the interrelation among macroeconomic politics, macroeconomic policymakers, macroeconomic policies, and macroeconomic perform ance. This interaction is examined using the expectational Phillips curve model, which measures macroeconomic outcomes in terms of inflation and unemployment. The subject of macroeconomic politics mainly focuses on voter behavior, presidential re­election ambition, and political party priorities. These political factors influence the macroeconomic policy actions of the president, Congress, and the central bank; the analysis takes into account both fiscal and monetary policies. The author’s examination of citizen sentiment is based on rational voter theory and the median voter model. He compares the effects of macroeconomic farsightedness versus shortsightedness in voters and contrasts the conservative versus liberal perspectives on macroeconomic policy and performance. The empirical component of the analysis examines the electoral and partisan political business cycle effects upon the U.S. economy, and evidence of idiosyncratic effects during the time frame of 1961–2014 is found. Finally, the author discusses macroeconomic influence on various measures of voter sentiment, such as presidential job approval, and presidential and congressional election outcomes.

A comprehensive and authoritative work on relationships between the economy and politics in the years from Eisenhower through Reagan. Hibbs identifies which groups “win” and “lose” from inflations and recessions and shows how voters’ perceptions and reactions to economic events affect the electoral fortunes of political parties and presidents.

Drawing together leading scholars, the book provides a revealing new map of the US political economy in cross-national perspective.

The book shows how and why democracy has worked well or badly as measured by US macroeconomic performance.

Political macroeconomy refers to the interconnection between macroeconomic politics and macroeconomic performance. The expectational Phillips curve may be used to examine the economic aspects of this interrelation. Macroeconomic politics relates to voter behavior, presidential reelection ambition, partisan economic priorities, and special interests. These factors impact the fiscal and monetary policy actions of the president, Congress, and central bank. According to the electoral effect, presidents attempt to boost the economy before an election to increase reelection votes. According to the partisan effect, conservative presidencies are relatively inflation averse, while liberal administrations are relatively unemployment averse. The evidence, however, suggests that the electoral and partisan effects occurred idiosyncratically in the U.S. economy during 1961–2016. The economy also affects presidential approval, Congressional elections, consumer sentiment, voter participation, and macropartisanship. An international dimension of the political macroeconomy is the issue of free trade versus protectionism and the perspectives of economic liberalism, neomercantilism, and structuralism.

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.