Crisis, Stabilization, and Economic Reform
Therapy by Consensus
Bruno, Michael,
late Vice President, Development Economics and Chief Economist,
World Bank
Print publication date: 1993
Published to Oxford Scholarship Online: September 2006 Print ISBN-13: 978-0-19-828663-9 doi:10.1093/0198286635.001.0001 |
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Abstract:
This book examines the phenomenon of the high inflation processes of the 1970s and 1980s as exemplified by Argentina, Brazil, and Israel. It explores the common characteristics of such processes and their possible cures — with some emphasis on the lessons of the Israeli experience in respect of the role of incomes policy and the political economy of stabilization. The discussion of the theoretical underpinnings of ‘shock’ treatments provides a good example for the blending of a number of disciplines: lessons of economic history, open economy monetary and macro theory, game-theory applications to economic policy design (concepts such as dynamic inconsistency, government reputation, and credibility), and the rationalization of incomes policy.
Keywords: inflation, stabilization programme, Israel, Latin America, Eastern Europe, incomes policy, price shock Table of Contents
Preface
1.
High Inflation, Growth Crisis, and Reform: Historical Perspective and Brief Overview
2.
The Gathering Storm: Israel's Structural Crisis in the 1970s
3.
Shocks and Accommodation: The Dichotomy and Mechanics of High Inflation
4.
Preparing for a Comprehensive Stabilization Programme 1981–1985: Doctrinal Debates, Politics, and Trial by Error
5.
The Fight over Stabilization and the Structural Adjustment Process, 1985–1991
6.
Latin American Comparisons: Failures, Successes, Heterogeneity
7.
Stabilization and Reform in Eastern
Europe
8.
Synthesis, Policy Lessons, and Open Questions
Bibliography
Index
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