Pace and Sequencing of Economic Policies / Juan Zalduendo.

Format:

Book

Government document

Author/Creator:

Zalduendo, Juan.

Series:

IMF Working Papers; Working Paper ; No. 2005/118

IMF Working Papers

Language:

English

Physical Description:

1 online resource (21 p.)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2005.

Language Note:

English

Summary:

This paper examines the design of economic policies using factor analysis, which has several advantages; in particular, it limits the problems that typically arise from the high correlation of economic policy indicators, it helps in identifying clusters of economic policy, and it facilitates the derivation of policy design indicators that represent the pace and sequence of economic policies. Econometric results show that the introduction of sound economic policies has both level effects and growth effects, suggesting it is necessary to exercise caution when assessing a country's growth prospects immediately following the introduction of new policies. In addition, the results suggest that growth strengthens when a country implements policies that outpace either a notional measure of "world average policies" or a country's own policy trend, and highlight the critical role played by macroeconomic vis-à-vis microeconomic policies. The latter also reveals the existence of sequencing factors in policy implementation; for example, trade liberalization and financial liberalization positively affect growth, but more so if economic stability and fiscal sustainability have been secured.

Contents:

""Contents""; ""I. INTRODUCTION""; ""II. FACTOR ANALYSIS""; ""III. DESIGN OF ECONOMIC POLICIES""; ""A. Econometric Methodology""; ""B. Application of Factor Analysis to Policy Indicators""; ""C. Benchmark Econometric Results""; ""D. Policy Design""; ""IV. CONCLUSIONS""; ""References""

Notes:

Description based upon print version of record.

Description based on publisher supplied metadata and other sources.

ISBN:

9786613821294

9781462334698

1462334695

9781452724942

1452724946

9781282448100

1282448102

9781451906738

1451906730

OCLC:

805506753