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Economics

The Politics of Fiscal Consolidation Under Different Electoral Systems

Quick fact

Countries with proportional representation tend to have higher debt levels and delay fiscal consolidation longer than majoritarian systems, but when they do act, the consolidation often spreads pain more evenly across society.

Why this is interesting

Why can some governments slash spending without losing power, while others are thrown out of office? The answer may lie not in the economy, but in the ballot box itself.