Politics and Economics
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’.
- Borooah, V.K., and F. van der Ploeg. 1984. Political aspects of the economy, Department of Applied Economics occasional paper 55. Cambridge: Cambridge University.Google Scholar
- 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.Google Scholar
- 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.Google Scholar
- Olsen, M. 1965. The logic of collective action. Cambridge: Cambridge University Press.Google Scholar
- Stigler, G.J. 1973. General economic conditions and national elections. American Economic Review 63: 160–167.Google Scholar
- van Winden, F.A.A.M. 1983. On the interaction between state and private sector. Amsterdam: North-Holland.Google Scholar