Several phases occur throughout a typical cycle of economic populism. Indicate the usual order in which the following phases take place populist governments begin a program of "reactivation, redistribution, and restructuring." In this program, macroeconomic constraints of budgets and foreign exchange are ignored, and budget deficits are run up.
First Phase
Second Phase
Third Phase
Fourth Phase
Inflation can become severe while the use of the government budget to stimulate production leads to large deficits. Capital begins to flee the country as everyone anticipates that the policies are not sustainable and that the currency will be devalued.
First Phase
Second Phase
Third Phase
Fourth Phase
There is widespread disillusionment with current policy, often as a result of a recession or a period of very slow growth.
First Phase
Second Phase
Third Phase
Fourth Phase
Growth leads to imports and trade deficits and the beginning of bottlenecks in the eco