in contrast, the presence of one in the absence of the other can exacerbate distributive conflicts and produce poor economic outcomes
(Garrett 1998). In particular, this literature stresses the importance of strong left-labor
blocs and corporatist bargaining in moderating labor militancy and encouraging wage
restraint, thus dampening the wage component of inflationary pressures. Not
surprisingly, then, our results suggest that strong left-labor blocs help guard against
inflationary crises, but do not influence the likelihood of other types of crises