When Do Structural Reforms Work On The Role Of The Business Cycle And Macroeconomic Policies

Author : MissAnna Rose Bordon,Mr.Christian Ebeke,Ms.Kazuko Shirono
Publisher : International Monetary Fund
Page : 28 pages
File Size : 41,9 Mb
Release : 2016-03-15
Category : Business & Economics
ISBN : 9781513589923

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When Do Structural Reforms Work? On the Role of the Business Cycle and Macroeconomic Policies by MissAnna Rose Bordon,Mr.Christian Ebeke,Ms.Kazuko Shirono Pdf

Structural reforms are expected to lift growth and employment, but their effects are surprisingly difficult to pin down empirically. One reason is their potential endogeneity to the economic environment in which they are conducted. For example, the impact of a reform implemented shortly before a cyclical upswing is difficult to distinguish from the recovery itself. Similarly, macroeconomic policies conducted along a structural reform could affect the estimated impact. Exploring various options, this paper develops robust estimates of the impact of labor and product market reforms by using local projection techniques while controlling for endogeneity of reforms and other biases. The results suggest that labor and product market reforms have a lagged but positive impact on employment creation, and the positive effect remains even after controlling for the endogeneity of the decision to reform. Supportive macroeconomic policies are found to increase the effect of labor and product market reforms, consistent with the view that some structural reforms are best initiated in conjunction with supportive fiscal or monetary policy.

Author : Anna Rose Bordon,Christian Ebeke,Kazuko Shirono
Publisher : Unknown
Page : 128 pages
File Size : 53,5 Mb
Release : 2016
Category : Business cycles
ISBN : 1513591215

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When Do Structural Reforms Work? by Anna Rose Bordon,Christian Ebeke,Kazuko Shirono Pdf

Author : Jakob de Haan,Jante Parlevliet
Publisher : Springer
Page : 284 pages
File Size : 50,7 Mb
Release : 2018-03-22
Category : Political Science
ISBN : 9783319744001

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Structural Reforms by Jakob de Haan,Jante Parlevliet Pdf

This book presents a selection of contributions on the timely topic of structural reforms in Western economies, written by experts from central banks, the International Monetary Fund, and leading universities. It includes latest research on the impacts of structural reforms on the market economy, especially on the labor market, and investigates the results of collective bargaining in theory and practice. The book also comprises case studies of structural reforms. A literature survey on the topic serves as a valuable source for further research. The book is written by and targeted at both academics and policy makers.

Author : R. Solow
Publisher : Springer
Page : 170 pages
File Size : 42,5 Mb
Release : 2004-06-29
Category : Business & Economics
ISBN : 9780230524446

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Structural Reform and Macroeconomic Policy by R. Solow Pdf

The relation between structural reform and macroeconomic policy underlies the widespread perception that the large European economies have under-performed in the past decade in comparison both with their own standards and with the contemporaneous performance of the United States. This book, edited and introduced by Noel Laureate Robert M. Solow, provides analyses of how these economies could take a co-ordinated and simultaneous approach to reform in labour and product markets and the demand side.

Author : Jorge M. Katz,United Nations. Economic Commission for Latin America and the Caribbean
Publisher : United Nations Publications
Page : 164 pages
File Size : 42,7 Mb
Release : 2001
Category : Business & Economics
ISBN : UCSD:31822029884582

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Structural Reforms, Productivity and Technological Change in Latin America by Jorge M. Katz,United Nations. Economic Commission for Latin America and the Caribbean Pdf

In the last ten to fifteen years, profound structural reforms have moved Latin America and the Caribbean from closed, state-dominated economies to ones that are more market-oriented and open. Policymakers expected that these changes would speed up growth. This book is part of a multi-year project to determine whether these expectation have been fulfilled. Focusing on technological change, the impact of the reforms on the process of innovation is examined. It notes that the development process is proving to be highly heterogenous across industries, regions and firms and can be described as strongly inequitable. This differentiation that has emerged has implications for job creation, trade balance, and the role of small and medium sized firms. This ultimately suggests, amongst other things, the need for policies to better spread the use of new technologies.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 28 pages
File Size : 48,8 Mb
Release : 2015-10-14
Category : Business & Economics
ISBN : 9781498344104

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Structural Reforms and Macroeconomic Performance - Country Cases by International Monetary Fund Pdf

As a companion piece to the Board paper on Structural Reforms and Macroeconomic Performance: Initial Considerations for the Fund, this paper presents a selection of case studies on the structural reform experiences of member countries. These papers update the Board on work since the Triennial Surveillance Review toward strengthening the Fund’s capacity to analyze and, where relevant, offer policy advice on macro-relevant structural issues. The paper builds on the already considerable analytical work underway across the Fund, setting out considerations to support a more strategic approach going forward.

Author : Ms.Valerie Cerra,A. Fatas,Ms.Sweta Chaman Saxena
Publisher : International Monetary Fund
Page : 50 pages
File Size : 46,9 Mb
Release : 2020-05-29
Category : Business & Economics
ISBN : 9781513536996

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Hysteresis and Business Cycles by Ms.Valerie Cerra,A. Fatas,Ms.Sweta Chaman Saxena Pdf

Traditionally, economic growth and business cycles have been treated independently. However, the dependence of GDP levels on its history of shocks, what economists refer to as “hysteresis,” argues for unifying the analysis of growth and cycles. In this paper, we review the recent empirical and theoretical literature that motivate this paradigm shift. The renewed interest in hysteresis has been sparked by the persistence of the Global Financial Crisis and fears of a slow recovery from the Covid-19 crisis. The findings of the recent literature have far-reaching conceptual and policy implications. In recessions, monetary and fiscal policies need to be more active to avoid the permanent scars of a downturn. And in good times, running a high-pressure economy could have permanent positive effects.

Author : Wilfried A. Kouamé,Mr.Sampawende J Tapsoba
Publisher : International Monetary Fund
Page : 42 pages
File Size : 44,8 Mb
Release : 2018-03-19
Category : Business & Economics
ISBN : 9781484347003

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Structural Reforms and Firms’ Productivity: Evidence from Developing Countries by Wilfried A. Kouamé,Mr.Sampawende J Tapsoba Pdf

This paper assesses the effects of structural reforms on firm-level productivity for 37 developing countries from 2006 to 2014 period. It takes advantage of the IMF Monitoring of Fund Arrangements dataset for reform indexes and the World Bank Enterprise Surveys for firm-level productivity. The paper highlights the following results. Structural reforms such as financial, fiscal, real sector, and trade reforms, significantly improve firm-level productivity. Interestingly, real sector reforms have the most sizeable effects on firm-level productivity. The relationship between structural reforms and firm-level productivity is nonlinear and shaped by some firms’ characteristics such as the financial access, the distortionary environment, and the size of firms. The pace of structural reforms matters since being a “strong reformer” is associated with a clear productivity dividend for firms. Finally, except for financial and trade reforms, all structural reforms under consideration are bilaterally complementary in improving firm-level productivity. These findings are robust to several sensitivity checks.

Author : Mr.John C Bluedorn,Mr.Shekhar Aiyar,Mr.Romain A Duval,Davide Furceri,Daniel Garcia-Macia,Yi Ji,Davide Malacrino,Mr.Haonan Qu,Jesse Siminitz,Ms.Aleksandra Zdzienicka
Publisher : International Monetary Fund
Page : 31 pages
File Size : 49,7 Mb
Release : 2019-06-17
Category : Business & Economics
ISBN : 9781498319706

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Strengthening the Euro Area by Mr.John C Bluedorn,Mr.Shekhar Aiyar,Mr.Romain A Duval,Davide Furceri,Daniel Garcia-Macia,Yi Ji,Davide Malacrino,Mr.Haonan Qu,Jesse Siminitz,Ms.Aleksandra Zdzienicka Pdf

Cross-country differences in economic resilience—in an economy’s ability to withstand and adjust to shocks—remain significant in the euro area. In part, the differences reflect the lack of a national nominal exchange rate as a mechanism to adjust to shocks. The IMF staff has argued that union-wide architectural changes such as the banking union, the capital markets union, and a central fiscal capacity can help foster greater international risk sharing. Yet even these changes cannot insure against all shocks. National policies thus have a vital role to play. This IMF staff discussion note analyzes how national structural policies can help euro area countries better deal with economic shocks. Using a mix of empirical and modeling approaches, the note finds that growth-enhancing reforms to labor and product market regulations, tailored to country-specific circumstances, would help individual euro area economies weather adverse shocks. Higher-quality insolvency regimes are associated with more efficient factor reallocation following a shock. The note also finds that structural and cyclical policies interact. Greater rigidities make economies more fragile, putting a higher burden on fiscal policy. This is especially true for members of a monetary union. Countries should build fiscal space in good times and tackle rigidities, reducing their need for countercyclical policies in bad times while making countercyclical policies more effective when deployed.

Author : McMillan, Margaret ,Rodrik, Dani,Sepúlveda, Claudia
Publisher : Intl Food Policy Res Inst
Page : 328 pages
File Size : 40,7 Mb
Release : 2017-05-11
Category : Political Science
ISBN : 9780896292147

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Structural change, fundamentals, and growth : a framework and case studies by McMillan, Margaret ,Rodrik, Dani,Sepúlveda, Claudia Pdf

Author : Matteo Cacciatore,Mr.Romain A Duval,Giuseppe Fiori,Mr.Fabio Ghironi
Publisher : International Monetary Fund
Page : 65 pages
File Size : 46,6 Mb
Release : 2017-10-03
Category : Business & Economics
ISBN : 9781484324264

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Market Reforms at the Zero Lower Bound by Matteo Cacciatore,Mr.Romain A Duval,Giuseppe Fiori,Mr.Fabio Ghironi Pdf

This paper studies the impact of product and labor market reforms when the economy faces major slack and a binding constraint on monetary policy easing. such as the zero lower bound. To this end, we build a two-country model with endogenous producer entry, labor market frictions, and nominal rigidities. We find that while the effect of market reforms depends on the cyclical conditions under which they are implemented, the zero lower bound itself does not appear to matter. In fact, when carried out in a recession, the impact of reforms is typically stronger when the zero lower bound is binding. The reason is that reforms are inflationary in our structural model (or they have no noticeable deflationary effects). Thus, contrary to the implications of reduced-form modeling of product and labor market reforms as exogenous reductions in price and wage markups, our analysis shows that there is no simple across-the-board relationship between market reforms and the behavior of real marginal costs. This significantly alters the consequences of the zero (or any effective) lower bound on policy rates.

Author : Mr. Antonio Spilimbergo,Mr. Alessandro Prati,Mr. Jonathan David Ostry
Publisher : International Monetary Fund
Page : 62 pages
File Size : 51,9 Mb
Release : 2009-10-15
Category : Business & Economics
ISBN : 9781451987164

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Structural Reforms and Economic Performance in Advanced and Developing Countries by Mr. Antonio Spilimbergo,Mr. Alessandro Prati,Mr. Jonathan David Ostry Pdf

This volume examines the impact on economic performance of structural policies-policies that increase the role of market forces and competition in the economy, while maintaining appropriate regulatory frameworks. The results reflect a new dataset covering reforms of domestic product markets, international trade, the domestic financial sector, and the external capital account, in 91 developed and developing countries. Among the key results of this study, the authors find that real and financial reforms (and, in particular, domestic financial liberalization, trade liberalization, and agricultural liberalization) boost income growth. However, growth effects differ significantly across alternative reform sequencing strategies: a trade-before-capital-account strategy achieves better outcomes than the reverse, or even than a "big bang"; also, liberalizing the domestic financial sector together with the external capital account is growth-enhancing, provided the economy is relatively open to international trade. Finally, relatively liberalized domestic financial sectors enhance the economy's resilience, reducing output costs from adverse terms-of-trade and interest-rate shocks; increased credit availability is one of the key mechanisms.

Author : Paolo Manasse,Dimitris Katsikas
Publisher : Routledge
Page : 248 pages
File Size : 54,5 Mb
Release : 2017-12-12
Category : Business & Economics
ISBN : 9781351987356

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Economic Crisis and Structural Reforms in Southern Europe by Paolo Manasse,Dimitris Katsikas Pdf

In recent years the countries of southern Europe have undergone, with varying intensity, a serious and prolonged economic crisis. Most have had to implement comprehensive economic adjustment programmes, including a wide range of structural reforms. Economic Crisis and Structural Reforms in Southern Europe examines these reforms, drawing policy lessons from their successes and failures. This book employs two basic strands of analysis: issues of policy design, and political economy considerations. It considers the choice of timing and sequencing of reforms, the choice of the appropriate policy instruments, the pressure of interest groups and the political calculations involved in reforms. Featuring chapters in which contributors explore both national cases of specific structural reforms, and a comparative approach in order to evaluate similar reforms across countries, this important and topical work explores ongoing issues within the economy. Focusing on the challenges of designing and implementing structural reforms under conditions of crisis, this book will be of interest to policy makers and researchers from national and international organizations as well as academics and members of research institutes interested in the economics and politics of the Eurozone crisis.

Author : Jürgen Weller,United Nations. Economic Commission for Latin America and the Caribbean
Publisher : Santiago, Chile : ECLAC
Page : 228 pages
File Size : 42,6 Mb
Release : 2001
Category : Capital market
ISBN : UCSD:31822029884756

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Economic Reforms, Growth and Employment by Jürgen Weller,United Nations. Economic Commission for Latin America and the Caribbean Pdf

In the last ten to fifteen years, profound structural reforms have moved Latin America and the Caribbean from closed, state-dominated economies to ones that are more market-oriented and open. Policymakers expected that these changes would speed up growth. This book is part of a multi-year project to determine whether these expectation have been fulfilled. Analysing the impact of the reforms on employment it is argued that expectations were not fulfilled with respect to the operation of the labour markets. The reforms limited the expansion of employment in some sectors, particularly in tradeable goods. They also created a bias in labour demad for better educated workers which exacerbates inequality. It is thus made clear that the region faces major challenges both in increasing the number of jobs and improving job equality.

Author : Mr.Ayhan Kose,Mr.Stijn Claessens,Mr.Marco Terrones
Publisher : International Monetary Fund
Page : 77 pages
File Size : 52,7 Mb
Release : 2008-12-01
Category : Business & Economics
ISBN : 9781451871326

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What Happens During Recessions, Crunches and Busts? by Mr.Ayhan Kose,Mr.Stijn Claessens,Mr.Marco Terrones Pdf

We provide a comprehensive empirical characterization of the linkages between key macroeconomic and financial variables around business and financial cycles for 21 OECD countries over the period 1960–2007. In particular, we analyze the implications of 122 recessions, 112 (28) credit contraction (crunch) episodes, 114 (28) episodes of house price declines (busts), 234 (58) episodes of equity price declines (busts) and their various overlaps in these countries over the sample period. Our results indicate that interactions between macroeconomic and financial variables can play major roles in determining the severity and duration of recessions. Specifically, we find evidence that recessions associated with credit crunches and house price busts tend to be deeper and longer than other recessions. JEL Classification Numbers: E32; E44; E51; F42