surveyed more recent studies, in which the authors conclude that the newer
theories on inflation focus on policy credibility, political stability and cycles and the reputation
of the government. However, the authors point out that these theories are based on variables that
are not quantifiable and are therefore excluded from most empirical studies. Also, Selialia (1995)
(cited in Dlamini et al. (2001)) indicates that the political economy approach to macroeconomic
policy places emphasis mostly on industrial countries. Therefore, this approach may not be
appropriate for application to developing countries.