Macroeconomic Fluctuations in Developing Countries: Some Stylized Facts

Christopher McDermott, Eswar Prasad and Pierre-Richard Agénor

No 1999/035, IMF Working Papers from International Monetary Fund

Abstract: This paper documents the main stylized features of macroeconomic fluctuations for 12 developing countries. Cross-correlations between domestic industrial output and a large group of macroeconomic variables (including fiscal variables, wages, inflation, money, credit, trade, and exchange rates) are presented. Also analyzed are the effects of industrial country economic conditions on output fluctuations in these countries. The robustness of the results is examined using different detrending procedures. The results indicate many similarities between macroeconomic fluctuations in developing and industrial countries (procyclical real wages; countercyclical variation in government expenditure) and some important differences (countercyclical variation in the velocity of monetary aggregates).

Keywords: WP; HP filter; terms of trade; positive correlation; correlation coefficient; price level; time series; Business Cycles; Fluctuations; Developing Countries; output fluctuation; price-output correlation; equilibrium business cycle model; output volatility; industrial sector output; business cycle fluctuation; Industrial sector; Inflation; Real wages; Real effective exchange rates; Sub-Saharan Africa (search for similar items in EconPapers)
Pages: 45
Date: 1999-03-01
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Citations: View citations in EconPapers (106)

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Journal Article: Macroeconomic Fluctuations in Developing Countries: Some Stylized Facts (2000)
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