Macroeconomic populism is a term coined by Rudi Dornbusch and Sebastian Edwards in a 1990 paper. The term refers to the policies by many Latin American administrations by which government spending and real wages increase in a non-sustainable way leading to inflation, then stagflation and ultimately an economic collapse that drops real wages to lower than they were before the populist period began.
Macroeconomic populism is a term coined by Rudi Dornbusch and Sebastian Edwards in a 1990 paper. The term refers to the policies by many Latin American administrations by which government spending and real wages increase in a non-sustainable way leading to inflation, then stagflation and ultimately an economic collapse that drops real wages to lower than they were before the populist period began.
Source: Wikipedia "Macroeconomic populism" · CC BY-SA 4.0
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