Latin American countries caught in vicious cycle of inflation and stabilization.
The article analyzes how inflation in Latin American countries is influenced by the behavior of interest groups and government policies. It shows that high inflation can result from printing money to meet demands for redistribution, leading to cycles of increasing inflation and stabilization efforts. These stabilization attempts initially succeed but are eventually abandoned as support wanes. The study suggests that the dynamics of inflation and stabilization can be explained by individual optimizing behavior within a political economy framework.