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Economic Development and Environmental SustainabilityNew Policy Options$
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Ramón López and Michael A. Toman

Print publication date: 2006

Print ISBN-13: 9780199298006

Published to Oxford Scholarship Online: September 2006

DOI: 10.1093/0199298009.001.0001

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Impacts of Macroeconomic Policies on the Environment, Natural Resources, and Welfare in Developing Countries

Impacts of Macroeconomic Policies on the Environment, Natural Resources, and Welfare in Developing Countries

Chapter:
(p.90) 3 Impacts of Macroeconomic Policies on the Environment, Natural Resources, and Welfare in Developing Countries
Source:
Economic Development and Environmental Sustainability
Author(s):

López Ramón

Michael A. Toman

Publisher:
Oxford University Press
DOI:10.1093/0199298009.003.0004

This chapter discusses relationships between the macro economy and economic policy, and the environmental and resource situation in developing countries. It focuses on the distortive effects of energy and resource subsidies, poorly managed monetary policy leading to exchange rate instability and high interest rates, and financial crises which often lead to too shortsighted policies and behavior regarding the management of environment and resources.

Keywords:   macroeconomic policy, monetary policy, energy subsidies, financial-sector flows, financial crises, environmental outcomes, natural resource exploitation

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