The economics of regime change

REGIME change is often viewed as an economic turning point.

Impoverished by years of fiscal indiscipline, price controls and state decay, nearly seven in 10 Venezuelans believe their livelihoods will improve over the next year now that America has deposed their feckless leader, Nicolas Maduro.

Many Iranians bravely protesting against their theocratic rulers over sinking living standards must harbour similar hopes. Yet, even though political moments can arrive abruptly, as Maduro and the ayatollahs have learned, economic outcomes take longer to adjust.