Abstract
No great powers of persuasion are required to establish the connection between politics and economics. In democracies it is ‘obvious’ that, to quote Harold Wilson, former Prime Minister of Great Britain, ‘the standing of a Government and its ability to hold the confidence of the electorate of a General Election depends upon the success of its economic policy’. Given this dependence of political popularity on economic performance it is equally ‘obvious’ that a Government will try to manipulate its economic policy in such a way as to produce the most favourable outcomes just before election day, leaving the less favourable outcomes to occur at other times. Such behaviour on the part of governments is described in the literature as generating a ‘political business cycle’.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Bibliography
Boddy, R., and J. Crotty. 1975. Class conflict and macro-policy: The political business cycle. Review of Radical Political Economics 7(1): 1–19.
Borooah, V.K., and F. van der Ploeg. 1984. Political aspects of the economy, Department of Applied Economics occasional paper 55. Cambridge: Cambridge University.
Butler, D., and D. Stokes. 1974. Political change in Britain. London: Macmillan.
Converse, P.E. 1958. The shifting role of class in political attitudes and behaviour. In Readings in social psychology, ed. E.E. Maccoby, T.M. Newcomb, and E.L. Hartley. London: Methuen.
Frey, B.S. 1984. Public choice and global politics. International Organization 38: 199–223.
Heclo, H., and A. Wildavsky. 1981. The private government of public money. London: Macmillan.
Hibbs, D.A. 1982. Economic outcomes and political support for British Governments among occupational classes: A dynamic analysis. American Political Science Review 76: 259–279.
Kalecki, M. 1943. Political aspects of full employment. Political Quarterly 14: 322–331. Reprinted in Kalecki, M. Essays on the dynamics of the capitalist economy, 1933–70. Cambridge: Cambridge University Press.
Olsen, M. 1965. The logic of collective action. Cambridge: Cambridge University Press.
Stigler, G.J. 1973. General economic conditions and national elections. American Economic Review 63: 160–167.
van Winden, F.A.A.M. 1983. On the interaction between state and private sector. Amsterdam: North-Holland.
Author information
Authors and Affiliations
Editor information
Copyright information
© 2018 Macmillan Publishers Ltd.
About this entry
Cite this entry
Borooah, V.K. (2018). Politics and Economics. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_1346
Download citation
DOI: https://doi.org/10.1057/978-1-349-95189-5_1346
Published:
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-95188-8
Online ISBN: 978-1-349-95189-5
eBook Packages: Economics and FinanceReference Module Humanities and Social SciencesReference Module Business, Economics and Social Sciences