Macroeconomic Stability in Developing Countries : How Much Is Enough?
Over the 1990s macroeconomic policies improved in most developing countries, but the growth dividend from this improvement fell short of expectations, and a policy agenda focused on stability turned out to be associated with a multiplicity of finan...
| Main Authors: | , |
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| Format: | Journal Article |
| Language: | English en_US |
| Published: |
Oxford University Press on behalf of the World Bank
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2006/08/17591679/macroeconomic-stability-developing-countries-much-enough http://hdl.handle.net/10986/16427 |
| Summary: | Over the 1990s macroeconomic policies
improved in most developing countries, but the growth
dividend from this improvement fell short of expectations,
and a policy agenda focused on stability turned out to be
associated with a multiplicity of financial crises. This
article examines the contents and implementation of the
macroeconomic reform agenda of the 1990s. It reviews the
progress achieved through 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 more often
than not slow growth and frequent crises resulted from
shortcomings in the reform agenda of the 1990s. These
concern limitations in the depth and scope of the reform
agenda, its lack of attention to macroeconomic
vulnerabilities, and its inadequate attention to
complementary reforms outside the macroeconomic sphere. |
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