 RussiaAnatoly Peresetsky and Vladimir Popov Chapter 8 in Macroeconomic Volatility, Institutions and Financial Architectures, 2008, pp 190-219 from Palgrave Macmillan Abstract: Abstract Would a particular country be willing to reduce volatility at the expense of lowering the long-term growth rate if there were a trade-off between volatility and growth? Fortunately, there is no such trade-off. As many studies have documented (see Aghion et al., 2004 for a recent survey of the literature) the relationship between volatility and growth is negative, that is, rapid growth is associated with lower volatility. This result holds if one compares fast- and slow-growing countries, as well as periods of fast and slow growth/recession in the same country. So, policies to promote growth, if successful, are likely to reduce volatility as well, even though the mechanism of such a spin-off is not well understood. Nevertheless, the volatility of macro variables cannot be totally explained by their growth rates: even when controlling for the average speed of change, there remain huge variations in volatility in various countries and periods. Keywords: Real Exchange Rate; Money Supply; Private Capital; External Shock; Macroeconomic Policy (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-59018-2_8 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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