This book presents the results of about three years of work finished in early 1992 in the area of private investment and macroeconomic adjustment. Its purpose is to explore the macroeconomic determinants of investment and the causes and cures for the gap between maroeconomic adjustment and...

The authors analyze the response of private and public investment to external shocks, macroeconomic adjustment, and structural reform in three sets of countries: (a) countries that pursued structural reform and liberalization in Latin American in the 1970s (Chile) or the 1980s (Mexico and...

The authors construct, estimate, and simulate a macroeconomic model for Chile. This model allows aggregate supply and demand factors to interact in determining such key economic variables as inflation, the real wage, the real exchange rate, real output and employment, and the current account...

The 1990s have seen renewed interest in themes of economic growth and development. This is a welcome change after a decade and a half during which macroeconomics was dominated by a concern with short-term adjustment and stabilization issues -- and basic problems of growth, capital accumulation,...

This paper reviews current investment theories, recent models linking macroeconomic policies and private investment, and the effect of uncertainty and credibility on irreversible investment decisions. Empirical studies on the subject are also reviewed, and the general implications of this...

The 1990s have seen a renewed interest in issues of capital accumulation and growth. New paradigms for saving, investment, and growth have been advanced to address theoretical and empirical puzzles and to guide the design of better policies. This paper provides a policy-oriented review of recent...

This article reviews theories of investment behavior and examines empirical studies of investment in developing countries. The emphasis is on understanding the interactions among macroeconomic policies, structural adjustment and private investment. The article deals with the effect of exchange...