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Business Cycles and Macroeconomic Policy in Emerging Market Economies

Philip Lane

International Finance, 2003, vol. 6, issue 1, 89-108

Abstract: This paper argues that significant structural differences exist between industrial and emerging market economies. Cyclical fluctuations have been more extreme for the latter group and exacerbated by inappropriately pro-cyclical macroeconomic policies. However, we argue that effective stabilization policies remain feasible for the emerging market economies, so long as these invest in developing a robust domestic institutional infrastructure. Copyright 2003 by Blackwell Publishers Ltd.

Date: 2003
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