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Business Cycles and Macroeconomic Policy in Emerging Market Economies
Author(s) -
Lane Philip R.
Publication year - 2003
Publication title -
international finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.458
H-Index - 39
eISSN - 1468-2362
pISSN - 1367-0271
DOI - 10.1111/1468-2362.00109
Subject(s) - economics , emerging markets , business cycle , macroeconomics , monetary economics , international economics , market economy
This paper argues that significant structural differences exist between industrial and emerging market economies. Cyclical fluctuations have been more extreme for the latter group and exacerbated by inappropriately pro‐cyclical macroeconomic policies. However, we argue that effective stabilization policies remain feasible for the emerging market economies, so long as these invest in developing a robust domestic institutional infrastructure.