Real exchange rate appreciation usually accompanies stabilization programs based on the exchange rate. One thing that causes the real exchange rate to appreciate is the capital inflows that follow liberalization of the capital account and the financial market. Capital inflows cause the exchange...

The Bank introduced adjustment lending in 1979 to help member countries restructure their economies to create conditions conducive to equitable growth while maintaining a sustainable balance of payments. A review of the experience of other nations with adjustment problems may provide useful...

In recent years, private capital inflows to some developing countries have increased sharply. This increase has provided the financing needed to enhance the use of existing capacity and to raise investment levels. But capital inflows produce their own problems. They can increase inflation and...

Simple comparisons of growth rates in countries that have had at least two structural adjustment loans (SALs) or at least three adjustment loans show that their growth has improved more than that of other countries. But simple comparisons of the performance of groups of countries are poor...

This paper reviews the rationale for programs and then evaluates the design, implementation, and effectiveness of Bank-supported adjustment programs anddiscusses lessons that have emerged from the analysis of adjustment problems and programs. In countries that are experiencing acute...

Since the debt crisis, many countries are still struggling to achieve a current account situation that is compatible with reduced external financing and a moderate but sustainable rate of output growth. A key element of a successful medium term strategy is to move resources into the export...

This paper analyzes the role of public finance and trade policies in the adjustment experience of Chile over the past 15 years. The purpose is to first review the Chilean public sector and trade reforms, and then to examine their role in the economic development of Chile. The paper is divided...

This paper draws on estimates of consumption functions for 13 developing countries to analyze the effectiveness of public policy in raising saving. First, it provides evidence from time-series and panel data on how liquidity constraints affect consumption functions. This suggests that a rise in...

This paper shows how the industrial structure and performance changed after Chile's dramatic trade liberalization. A comparison of the 1967 and 1979 censuses shows little improvement in productivity overall, but these figures don't separate the effects of trade liberalization from the effects of...

This paper evaluates Chile's stabilization policies since the early 1970s. Four episodes are examined: (a) the high inflation at the beginning of the military regime when inflation was close to 1000 percent per year; (b) the orthodox stabilization program of 1975; (c) the exchange rate-based...