Economics
The Relationship Between Veto Player Structure and Anti-Inflation Policy Credibility
Quick fact
Governments with a larger number of veto players—such as multiple coalition partners or bicameral legislatures—may actually enjoy greater anti-inflation credibility because it is harder for future governments to reverse an announced anti-inflation policy. This is one reason why countries with more consensus-oriented institutions often have lower and more stable inflation.
Why this is interesting
Why do some governments successfully convince financial markets that they will fight inflation while others can't, even when they promise to do so? The answer may lie not in the government itself, but in the number of politicians who can veto it.