Political Instability

Comparing 18 coup countries with 79 developing countries without one, coups lower electoral democracy and income per capita but do not significantly change recorded inflows to the OECD, asylum applications, skilled emigration or the spread of migrants across destinations.

Between 2016 and 2023 Peru cycled through seven presidents, a self-coup, and deadly protests, yet its sovereign spread fell to historic lows. The decoupling is traced to the credibility of the Central Reserve Bank under Governor Velarde, and rationalized with a delegation-and-learning model.