Populism casts long shadow over central bank policy – NBER paper

The memory of high inflation under populist leaders has a lingering effect on central bank policy long after the governments have been displaced, a new study argues.

The working paper, Fiscal populism and monetary policy rules, was published this month by the US National Bureau of Economic Research. It argues that under left-wing populist leaders, central banks lend more to governments than is the case under right-wing populist regimes.

“While the emergence of right-wing populist governments is