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Title: |
Domestic Adjustment Policies and External Economic Shocks |
| Author: |
Hasan, Parvez |
| Author
Affiliation: |
World Bank |
| Source: |
International Economic Journal, Spring 1988, v. 2, no. 1, pp. 53-68 |
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Publication Date: |
Spring 1988 |
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Abstract: |
The paper outlines a conceptual framework
for looking at the problem of economic adjustment in the wake of
external economic shocks. It then analyzes the experience of ten major
oil importing countries in responding to the oil and interest rate
shocks during 1973-84. It also contrasts the experience of two countries
which faced positive external shocks. In drawing the lessons of
experience, the paper stresses the importance of domestic policies
especially flexible macroeconomic management including an active
exchange rate policy. It also points to the need for symmetry in dealing
with positive and negative economic shocks. |
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