Growth after the Crisis
How hospitable will the global environment be for economic growth in the developing world as we come out of the present financial crisis? The answer depends on how well the author manage the following tension. On the one hand, global macro stabilit...
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Format: | Working Paper |
Language: | English en_US |
Published: |
World Bank, Washington, DC
2017
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Subjects: | |
Online Access: | http://documents.worldbank.org/curated/en/527211468341071399/Growth-after-the-crisis http://hdl.handle.net/10986/27937 |
Summary: | How hospitable will the global
environment be for economic growth in the developing world
as we come out of the present financial crisis? The answer
depends on how well the author manage the following tension.
On the one hand, global macro stability requires that we
prevent external imbalances from getting too large. On the
other hand, growth in poor nations requires that the world
economy be able to absorb a rapid increase in the supply of
tradable produced in the developing world. It is possible to
render these two requirements compatible, but doing so
requires greater use of explicit industrial policies in
developing countries, which have the potential of
encouraging of modern tradable activities without spilling
over into trade surpluses. The 'price' to be paid
for greater discipline on real exchange rates and external
imbalances is greater use (and permissiveness) towards
industrial polices. |
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