O bold é meu.
The back of Berlusconi: Is this the end of populism in Europe? | vox - Research-based policy analysis and commentary from leading economists
Populism can be defined by two key features:
- Consensus gathering based on promises of redistribution to the masses.
- Concealment of government budget constraints from the voters.
These flourished in Latin America, mostly during boom times.Populist governments that succeed in good economic times can easily implement public expenditure policies which are, in fact, procyclical, as a number of research contributions show (Akitoby et al. 2004, Kaminsky et al. 2004, Talvi and Vegh 2005). Indeed, in Latin America populism is widely understood as excessive public spending during booms. Obviously, fiscal policies should, instead, be countercyclical in order to fulfill the basic principle of consumption smoothing at the aggregate level and the idea of accumulating public sector precautionary savings as insurance against future recessions. Finding a procyclical pattern of government spending is even more shocking because, in developing countries, the business cycle is much more pronounced and volatile than in developed countries.