Stability with Growth
Macroeconomics, Liberalization and Development

There is a dissatisfaction with the economic policies advocated by many international financial institutions. This book aims to present an alternative to "Washington Consensus" neo-liberal economic policies by showing that both macro-economic and liberalization policy must be sensitive to the particular circumstances of developing countries.

There is growing dissatisfaction with the economic policies advocated by the IMF and other international financial institutions - policies that have often resulted in stagnating growth, crises, and recessions for client countries. This book presents an alternative to "Washington Consensus" neo-liberal economic policies by showing that both macro-economic and liberalization policy must be sensitive to the particular circumstances of developing countries. One-size-fits-all policy prescriptions are likely to fail given the vast differences between countries. This book discusses how alternative approaches to economic policy can better serve developing countries both in ordinary times and in times of crisis.

PREFACE
OVERVIEW
1. Introducing the key questions
2. Objectives
MACROECONOMICS
3. Three perspectives on policy
4. Is macroeconomics different in developing countries?
5. Policy instruments from three perspectives: fiscal and monetary policy
6. Open economy complications
7. Exchange rate management and micro tools for macro management
8. Policy frameworks
9. Formal approaches
CAPITAL MARKET LIBERALIZATION
10. Capital market liberalization: the arguments for and against
11. A formal approach: capital market failures
12. Interventions in capital markets
13. Capital market liberalization: summary and remaining debates
CONCLUSION
14. Stabilization, liberalization, and growth