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 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.

Bibliographic Details

Main Authors:	Montiel, Peter, Servén, Luis
Format:	Policy Research Working Paper biblioteca
Language:	English en_US
Published:	World Bank, Washington, D.C. 2004-11
Subjects:	ADVERSE CONSEQUENCES, ADVERSE EFFECTS, ASSET SALES, BALANCE OF PAYMENTS, BANKING CRISES, BANKING SYSTEM, BENCHMARKS, BORROWING, BORROWING COSTS, CAPITAL ACCOUNT, CAPITAL FLOW, CAPITAL FLOWS, CAPITAL FORMATION, CAPITAL INFLOWS, CONTINGENT LIABILITIES, CREDIBILITY, CURRENCY, CURRENT ACCOUNT, CURRENT ACCOUNT DEFICITS, DEBT, DEBT MANAGEMENT, DEBT/, DEFAULT RISK, DEVALUATION, DISINFLATION, EARNINGS, ECONOMIC GROWTH, ECONOMICS, EFFECTIVE USE, EMERGING MARKETS, ENDOGENOUS VARIABLES, EXCHANGE RATE, EXCHANGE RATE POLICIES, EXCHANGE RATE POLICY, EXCHANGE RATE VOLATILITY, FINANCIAL ASSETS, FINANCIAL CRISES, FINANCIAL MARKETS, FINANCIAL SECTOR, FINANCIAL SYSTEM, FISCAL CONSOLIDATION, FISCAL COSTS, FISCAL DEFICITS, FISCAL GAP, FISCAL POLICY, FISCAL YEARS, FOREIGN CURRENCY, GDP, GDP DEFLATOR, GNP, GROWTH RATE, HUMAN CAPITAL, IFIS, INCOME, INCOME COUNTRIES, INCOME DISTRIBUTION, INDUSTRIAL ECONOMIES, INFLATION, INFLATION RATE, INFLATION RATES, INSTITUTIONAL FRAMEWORK, INTEREST RATES, INTERNATIONAL FINANCIAL MARKETS, MACROECONOMIC PERFORMANCE, MACROECONOMIC POLICIES, MACROECONOMIC POLICY, MACROECONOMIC REFORM, MACROECONOMIC STABILITY, MACROECONOMIC STABILIZATION, MARKET ECONOMIES, MATURITY, MONETARY POLICY, NATIONAL INCOME, NET WORTH, OUTPUT, PAYMENTS ARREARS, POLICY ENVIRONMENT, PRESENT VALUE, PRIVATE CONSUMPTION, PUBLIC DEBT, PUBLIC EXPENDITURES, REAL EXCHANGE RATE, REAL EXCHANGE RATES, REAL GDP, RETIREMENT, SEIGNIORAGE, SOLVENCY, STABILIZATION POLICIES, STOCKS, SYSTEMIC BANKING CRISES, TAX COLLECTION, TERMS OF TRADE, VALUATION, VOLATILITY, VULNERABILITY,
Online Access:	http://documents.worldbank.org/curated/en/2004/11/5493469/macroeconomic-stability-developing-countries-much-enough http://hdl.handle.net/10986/13998
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