Growth Oriented Adjustment Programs: A Reconsideration.

Working paper

This paper responds to the important pedagogical exercise of Khan and Montiel (1989). Those authors integrate the Polak monetary model of macroeconomic adjustment with a two-gap growth model to study 'adjustment with growth'. Here we nest both the Polak and the Khan and Montiel models in a very conventional macro-model. We first study the effects of a negative external shock and argue that adjustment with growth would not be achieved from adjustment policies on either the Polak or the Khan an...

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Authors: Vines, D

• Publisher: CEPR
• Host title: C.E.P.R. Discussion Papers
• Series: C.E.P.R. Discussion Papers
• Volume: 406
• Publication date: 1990-01-01
• Paper number: 406
• Language: English