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Business Cycles and Macroeconomic Policy in Emerging Market Economies

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  • Philip R. Lane

Abstract

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.

Suggested Citation

  • Philip R. Lane, 2003. "Business Cycles and Macroeconomic Policy in Emerging Market Economies," International Finance, Wiley Blackwell, vol. 6(1), pages 89-108, March.
    • Handle: RePEc:bla:intfin:v:6:y:2003:i:1:p:89-108
    DOI: 10.1111/1468-2362.00109
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