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The document discusses the interplay between politics and macroeconomic policy in industrial democracies, highlighting how political motivations influence economic fluctuations. It presents two main theories: the political business cycle (PBC), which suggests politicians manipulate economic conditions for electoral gain, and the partisan theory (PT), which posits that different political parties have varying preferences for inflation and unemployment based on their constituencies. The findings indicate that

Author

sonamuraleedharan

Language

EN