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Increased Understanding of Supply Side Economics

work, Entrepreneurship, and finance

Much has been learned about successful and unsuccessful economic policies for growth since the Second World War. For developing countries, important lessons have included the need for relying on the international trade as an “engine of growth”, the importance of reasonably stable macroeconomic policies, and the need for appropriate incentives for economic activity. These lessons have been learned both through experience and through analyses of successes and failures. The same is true for lessons for the industrial countries. There is much more appreciation of the costs of inflation, the appropriate relationship between private and public sectors, and many other issues. But with economic growth, new issues arise, and learning continues. This is true at present with the Great Recession, and the lessons that are being learned about both the importance of a well-functioning financial system and the types of measures that are warranted to provide financial stability.

442wp.pdf (1.05 MB)
Anne O. Krueger
Publication Date
May, 2011