Browse

You are looking at 1 - 10 of 49 items for :

Clear All
Hans P. Binswanger

This paper discusses quantitative indicators that measure such macroeconomic variables as the growth of national product, inflation. The importance of considering several indicators in a dynamic context becomes particularly relevant during periods when needed economic and financial adjustment measures are undertaken. Rationales given for maintaining negative real interest rates in developing countries range from keeping down the cost of servicing the public sector’s debt, or of investment, to avoiding the consequences of other policies.

Gilbert T. Brown

In their efforts to speed up development, many less developed countries have favored low agricultural prices that have had adverse effects on food production, income distribution, and economic growth. The author finds that official policies that subsidize and control prices of agricultural products seem to favor the large-scale farmers and better-off urban populations in developing countries. Such policies tend to depress overall food production and the incomes of small-scale farmers and reduce domestic savings and available foreign exchange. He therefore suggests the reduction or ending of price distortions that restrict agricultural output.

Lawrence H. Summers

For the latest thinking about the international financial system, monetary policy, economic development, poverty reduction, and other critical issues, subscribe to Finance & Development (F&D). This lively quarterly magazine brings you in-depth analyses of these and other subjects by the IMF’s own staff as well as by prominent international experts. Articles are written for lay readers who want to enrich their understanding of the workings of the global economy and the policies and activities of the IMF.

ASHOK K. LAHIRI

Growth and demography, two important determinants of the savings rate in the life-cycle approach, are shown to explain much of the diversity in savings behavior in Asia across eight countries and over time. Inflation and adverse movements in the terms of trade are two additional factors that depress the propensity to save. The paper also finds evidence in favor of the error-correction formulation, under which the savings rate varies procyclically in the short run but remains constant in the steady state.

KLAUS DEININGER and LYN SQUIRE

For the latest thinking about the international financial system, monetary policy, economic development, poverty reduction, and other critical issues, subscribe to Finance & Development (F&D). This lively quarterly magazine brings you in-depth analyses of these and other subjects by the IMF’s own staff as well as by prominent international experts. Articles are written for lay readers who want to enrich their understanding of the workings of the global economy and the policies and activities of the IMF.

WILLIAM L. HEMPHILL

Theoretical and empirical studies of aggregate import behavior generally show the flow of imports to be determined chiefly by aggregate economic activity and by import prices relative to prices of domestically produced substitutes. For many less developed countries, however, this relationship is questionable because of the effects of trade and exchange restrictions. For these countries, imports consist largely of producer goods—capital equipment, maintenance items, and imported components—and there are no adequate domestic substitutes. If restrictions are used to limit imports, there will be a tendency for imports to determine output, rather than the reverse, particularly in the manufacturing sector.