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Boom, Crisis, and Adjustment reviews the macroeconomic experiences of eighteen developing countries from 1974 to 1989. The authors address why the experiences and policy reactions have differed among the countries, and how their individual growth rates were affected by these policy reactions.
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The International Economic Association was foremost in reviving professional economists' concern with institutions and their impact in publications such as Economic Institutions in a Dynamic Society (1989). This volume concentrates on the states whose development has been characterised as the 'East Asian miracle' in the light of the performance of other economies starting from similarly low income levels, including India, China, African states - especially Nigeria - and Latin American countries including Brazil. This comprehensive comparative survey in economic history demonstrates the external shocks and interacting domestic forces which constituted the growth dynamic. Nobel Laureates Kenneth Arrow and Douglass North and past President of the IEA the late Michael Bruno are among the thirty-four highly distinguished specialist contributors.
Volume II provides an in-depth analysis of important specific issues, detailed discussion of the independence of the Bank of Israel, and an econometric study of the central banks policies. This volume also includes a historical account of the liberalization of Israel's foreign-exchange market and various issues related to the banking system, such as concentration, competition, and especially banking supervision. In one of the articles in this volume, based on a series of interviews, the top officials of the Bank of Israel present their view on the Banks policies in the various periods.
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Leading world scholars analyze a range of specific departures from general equilibrium theory which have significant implications for the macroeconomic analysis of both developed and developing economies. Jacques Drèze considers uncertainty and incomplete markets and Nobel Laureate Robert Solow relates growth theory to the macroeconomic framework. Other issues examined are the implications for macro-policy of new research, including Joseph Stiglitz's warning on the misplaced zeal for financial market liberalization which partly engendered the East Asian and Russian crises.
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