This paper presents a critique of the traditional textbook representation of fiscal policy, and highlights the misleading policy implications perpetuated by this analysis. In particular, the conclusion that fiscal deficits are likely to be associated with higher interest rates is disputed, as is...

The objective of this chapter is to evaluate the theoretical debate on the choice of an exchange rate regime in light of the empirical evidence with a view to suggesting appropriate exchange rate regimes that are conducive for poverty reduction. Due to its obvious implications for poverty, the...

There is now a consensus that economic growth is a dominant determinant of poverty. That is, poverty reduction requires sustained economic growth significantly above the population growth so that per capita income continues to rise. Economic growth raises mean income and reduces the proportion...

High unemployment in most OECD countries seems intractable. The reduction of unemployment rate to an acceptable level requires a growth rate of the economy well in access of the current rate. However, policy makers are uneasy of pursuing an expansionary policy for the fear of igniting...

This paper attempts to assess the relative performance of the Australian Labor Party (ALP) and the Coalition governments in their management of the Australian macroeconomy. Given the problem of defining an appropriate counterfactual, we make comparisons using a number of different methods....

This research was motivated by current constraints on macroeconomic policy-making in Indonesia. On the fiscal side, the government is burdened with debt and the pressure to maintain social expenditure. On the monetary side, there is a preoccupation with a lower inflation rate which conflicts...

Examines the financial sector reform experience of Bangladesh. Finds that, while there have been some improvements in competition and efficiency, loan defaults still remain a significant problem. Also finds urban bias in loan allocation and shift of resources away from the rural sector. The main...