International Political Economy: Perspectives on Global Power and Wealth, Fourth Edition

Stephan Haggard 429

Democratic governments of this sort may be subject to political business cycles,
but they are also in a better position to capitalize on the honeymoon effect by
imposing stabilization programs early in their terms. This, too, is related to the
time horizons of politicians in more institutionalized systems. With greater
expectations that they will be able to reap the political benefits of stable policies,
politicians will be less tempted toward unsustainable expansionist policies....