Macroeconomic Stability in Developing Countries:How Much is Enough?
In the 1990s macroeconomic policies improved in a majority of developing countries, but the growth dividend from such improvement fell short of expectations, and a policy agenda focused on stability turned out to be associated with a multiplicity o...
| Main Authors: | , |
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, D.C.
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2004/11/5493469/macroeconomic-stability-developing-countries-much-enough http://hdl.handle.net/10986/13998 |
| Summary: | In the 1990s macroeconomic policies
improved in a majority of developing countries, but the
growth dividend from such improvement fell short of
expectations, and a policy agenda focused on stability
turned out to be associated with a multiplicity of financial
crises. The authors take a retrospective look at the content
and implementation of the macroeconomic reform agenda of the
1990s. They review the progress achieved with fiscal,
monetary, and exchange rate policies across the developing
world, and the effectiveness of the changing policy
framework in promoting stability and growth. The main lesson
is that slow growth and frequent crises resulted, more often
than not, from shortcomings in the reform agenda of the
1990s. These shortcomings essentially concern the depth and
breadth of the macroeconomic reform agenda, its attention to
macroeconomic vulnerabilities, and the complementary reforms
outside the macroeconomic sphere. |
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