Growth-Promoting Policies and Macroeconomic Stability
OECD Economics Department Working Papers No. 1091
43 Pages Posted: 2 Dec 2013
Date Written: November 28, 2013
Policy reforms aimed at boosting long-run growth often have side effects – positive or negative – on an economy’s vulnerability to shocks and their propagation. Macroeconomic shocks as severe and protracted as those since 2007 warrant a reconsideration of the role growth-promoting policies play in shaping the vulnerability and resilience of an economy to macroeconomic shocks. Against this background, this paper looks at a vast array of policy recommendations by the OECD that promote long-term growth – contained in Going for Growth and the Economic Outlook – and attempts to establish whether they underpin macroeconomic stability or whether there is a trade-off.
Keywords: growth, economic policy, business cycles, volatility
JEL Classification: E32, E52, E62, O40
Suggested Citation: Suggested Citation