Macroeconomic Stabilization and Adjustment

This work bridges the gap between macroeconomics and development economics. It adapts the existing theory on short-run macroeconomic stabilization to particular conditions and structural characteristics of developing economies. Thus, a theoretical analysis of macroeconomic adjustments is directed principally towards economic growth. The authors provide: An integrated approach to development macroeconomics, A framework essential for understanding key aspects related to the structure and transformation of economies, An introduction to the theory and design of stabilization and growth oriented structural adjustment programmes, Alternative way of restructuring the national income accounts so as to facilitate the management of open macroeconomic systems, Theoretical structure of the so-called merged ‘Bank-Fund’ model, Empirical examples with special reference to the Indian economy. The systematic treatment of the analytical structure underlying the application of stabilization theory makes the book accessible to students. The step-by-step model building approach is useful for appraisal of policy options and fully integrated model allows for modifications to specific economies.