Comparisons between presidential and parliamentary systems are a controversial topic in political science. In this paper we focus on the possible economic implications of the two systems, through political and institutional factors. This is a limited study, which needs more empirical facts. But the existing literature implies presidential governments produce more conflict between decision makers, therefore it is less favorable for building stable democracy, which effect fiscal parameters unfavorably. It has also some negative impact on a disciplined fiscal and monetary policy.

Comparisons between presidential and parliamentary systems are a controversial topic in political science. In this paper we focus on the possible economic implications of the two systems, through political and institutional factors. This is a limited study, which needs more empirical facts. But the existing literature implies presidential governments produce more conflict between decision makers, therefore it is less favorable for building stable democracy, which effect fiscal parameters unfavorably. It has also some negative impact on a disciplined fiscal and monetary policy.