Variations in the configuration of political institutions have long been linked to variations in monetary-policy choices, due to an (in)ability to successfully signal future policy decisions. The (perceived) quality of political institutions more generally also influences private-sector evaluations of the monetary authority and inflation expectations.
Electoral Institutions and Trade Policy: Personal-Vote Incentives and Barriers to Trade. [Appendix] (with Patrick Wagner), 2017.
Personal-vote incentives influence politicians’ behaviors. Applying the latest theoretical and empirical evidence of institutional personal-vote incentives, we find a positive and significant link between strong personal-vote incentives and trade protectionism.