Sustaining world economic recovery : the challenges ahead
Baneth, Jean | Grilli, Enzo
The paper analyzes the characteristics of the 1983-84 world economic recovery and its effects on developing countries' adjustment. It looks at the conditions for medium-term non-inflationary growth in the world economy and at the changes in policies necessary to cope with and redress over time the real and financial imbalances that threaten the sustainability of the current recovery. It presents a scenario for medium-term growth, resulting from moderate policy changes in industrial countries, within which the room for growth and continued policy adjustment in developing countries is examined in some detail. The risks of failure inherent in a continuation of present policy trends are also examined.
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