Estabilizacion y Gestion Economica en Pequenas Economias Abiertas: Comentario
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Date
1991-04
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Ohio State University. Department of Agricultural, Environmental, and Development Economics
Abstract
This paper examines the interaction between macroeconomic management and a small, open, development economy's prospects for long -term growth. It claims that macroeconomic stability is a necessary, but not sufficient, precondition for sustained growth. The choice of stabilization instruments has consequences on growth, while the choice of development strategy influences the degrees of freedom of the authorities to stabilize the economy. Devaluation is preferred to quantitative restrictions and other heterodox measures. Protectionism, on the other hand, increases rigidity and leads to instability.