Distributional Effects of Macroeconomic Policy Choices in Emerging Market Economies

Eswar Prasad

IMF Economic Review, 2014, vol. 62, issue 3, 409-429

Abstract: Distributional consequences typically receive limited attention in economic models that analyze the effects of monetary and financial sector policies. These consequences deserve more attention as financial markets are incomplete, imperfect, and economic agents’ access to them is often limited. This limits households’ ability to insure against household-specific (or sector-specific) shocks and magnifies the distributional effects of aggregate macroeconomic fluctuations and associated policy responses. These effects are likely to be even larger in emerging market and low-income economies beset by financial frictions. The political economy surrounding distributional consequences can sometimes lead to policy measures that reduce aggregate welfare. I argue that it is important to take better account of distributional rather than just aggregate consequences when evaluating specific policy interventions as well as the mix of different policies.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.palgrave-journals.com/imfer/journal/v62/n3/pdf/imfer20142a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/imfer/journal/v62/n3/full/imfer20142a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Distributional Effects of Macroeconomic Policy Choices in Emerging Market Economies (2013)
Working Paper: Distributional Effects of Macroeconomic Policy Choices in Emerging Market Economies (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:imfecr:v:62:y:2014:i:3:p:409-429

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41308/PS2

Access Statistics for this article

More articles in IMF Economic Review from Palgrave Macmillan, International Monetary Fund
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().