1945

Adjustment policies in developing countries: Selected issues

The current international economic situation is characterized by pervasive inflation, a slow-down in economic growth, the growing balance-of-payments pressures facing most developing countries, and widespread uncertainties. These developments, which represent an intensification of tendencies that have been evident in most countries for a number of years, have required urgent and strenuous efforts on the part of the developing countries to adapt their economies as best they can to the new situation. In effect, two interrelated but distinct sorts of adjustment are called for: current-account balances must be brought more completely under control and in some cases deficits must be reduced; and imbalances in the domestic economy and attendant inflationary pressures must be mitigated.

Related Subject(s): Economic and Social Development
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