Johnny Munkhammar skrev på denna blogg från 2004 till sin död 2012. Bloggen är upprätthållen som ett minne och som referens till Johnnys arbete av Johnny Munkhammars minnesfond.

This blog was operated by Johnny Munkhammar from 2004 until 2012 when he passed away. This blog is now in a memorialized state and operated by the Johnny Munkhammar fund.
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Wednesday 27/09/2023, 09:32:11

22/06/2008 6:58:24 pm
If You Reform Financial Markets, the Chances of Re-Election Increase. Three economists affiliated with the European Commission - Marco Buti, Alessandro Turrini and Paul van den Noord - have taken my book as a starting-point for further research. They have studied 21 OECD countries 1985-2004 focusing on which governments were actually re-elected.

They do confirm that reformers are at least as likely to get re-elected as non-reformers. But they also find that 65 per cent of the re-elected reformers governed in countries with high financial freedom. Liberalising financial markets, thus, seems to improve the chances of re-election.

This may be perfectly logical, because many reforms have a short-term cost and long-term greater gain. But the short-term loss is smaller if free financial markets can compensate for a temporary loss of income. This might make voters more likely to accept the short-term cost.

Read their paper here - >

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