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This paper develops a macroeconomic model for a small, open, developing economy that borrows abroad - to study the dynamic interaction between debt and growth and the impacts of various policies and exogenous shocks on the rate of capital accumulation, the current account, and debt. Adjustment policies that increase productivity and efficient use of capital increase both growth and the stock of external debt - but the new level of debt may be sustainable in the long run.
A stable macroeconomic environment and a functioning market economy are two essential preconditions for successful structural adjustment. Macroeconomic stability requires a low fiscal deficit to support external balance and low inflation. Only under these conditions can a change in microeconomic incentives succeed in developing resources to their most productive uses.
Reviews the measures taken by the Organization to improve its efficiency and effectiveness, decrease costs and ensure the relevance of its work to the needs and expectations of member nations. Covers the initiatives taken and the changes made in key areas of the Organization over the 1994-1999 period.
Other Canon Economics: Essays in the Theory and History of Uneven Economic Development brings together key essays on development economics from one of the most prolific and important development economists and historians of economic policy today. Erik S. Reinert argues through essays ranging from 1994 to 2020 that neo-classical economics damages developing countries, mostly via adherence to the theory of comparative advantage. Based on a long intellectual tradition, started by the Italian economists Giovanni Botero (1589) and Antonio Serra (1613), Reinert shows that the country which trades increasing returns goods – e.g. high-end manufacture – has advantages over the country which trades diminishing returns goods – e.g. commodities. This has important implications for today’s development strategies that, Reinert argues, should be seen as industrial strategies.
The presence of speculative bubbles in capital markets (an important area of interest in financial history) is widely accepted across many circles. Talk of them is pervasive in the media and especially in the popular financial press. Bubbles are thought to be found primarily in the stock market, which is our main interest, although bubbles are said to occur in other markets. Bubbles go hand in hand with the notion that markets can be irrational. The academic community has a great interest in bubbles, and it has produced scholarly literature that is voluminous. For some economists, doing bubble research is like joining the vanguard of a Kuhnian paradigm shift in economic thinking. Not so fast...
This book provides insights into the development of institutions during war and peace times in Sudan, and presents an analysis of the impact of institutional variables on investment and economic growth. The study combines a new institutional economics framework and a socioeconomic analysis of investment behavior with an analysis of the process of post-conflict reconstruction and development in Sudan/South Sudan. The book contains a wealth of information for policymakers, for the development aid community, and for researchers, based on the results of a cross-country analysis of panel data for Sudan and the results of survey data on investment determinants in South Sudan. An agenda for institutional reform is suggested for Sudan and South Sudan on the basis of the findings of the study. It presents valuable discussions on policy-relevant issues for Sudan and South Sudan, and it also contains an agenda for economic cooperation between Sudan and independent South Sudan. (Series: Institut fur Weltwirtschaft und Internationales Management - Vol. 18)