Abstract: This paper by Iyanatul Islam provides an analytical review and some empirical evidence to contend that macroeconomic policy, as currently understood and practiced in many countries, is mired in a ‘stabilization trap’. It seems to be preoccupied with stability at the expense of growth and with fiscal and inflation targets at the expense of employment.
See also: Iyanatul Islam, "Circumventing Macro-economic Conservatism: A Policy Framework for Growth, Employment and Poverty Reduction." International Labour Review, 144[1], pp. 55-84 (2005).
Copyright © 2004 International Labour Organization. For permission to use or distribute this paper, please contact the ILO. The ILO shall accept no responsibility for any inaccuracy, errors or omissions or for the consequences arising from the use of the Text.
