Avoiding the Stabilization Trap
Towards a Macroeconomic Policy Framework for Growth, Employment and Poverty Reduction
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, pp. 55-84 (2005).
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