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ISBN-10: 0821332805

ISBN-13: 9780821332801

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Example text

This series of stabilization attempts, each followed by policy collapse, has had deleterious effects on the level and efficiency of investment and the allocation of resources. The same argument could be made about the effects of volatility in output and demand (particularly for a relatively closed economy). Ramey and Ramey (1994) present empirical evidence supporting the view that volatility of output is detrimental to growth. Theoretically, there are several mechanisms through which volatility in relative prices (both atemporal and intertemporal) and output could hinder growth.

Because of the enormous increase in private flows, the demand for the Bank's traditional product, our money, is now growing more slowly. At the same time the demand for our advice is growing more rapidly. In fact, there is increasing synergy. For example, our role in helping governments attract private investment and in providing an adequate comfort level for private investors involves both our advice and creative use of our capital base. These kinds of services are highly knowledge intensive and draw on the Bank's comparative advantage as a knowledge-based institution.

Dani Rodrik 167 Comments Guillermo A. Calvo 194 Stijn Claessens 197 Floor Discussion 203 Incentives, Rules of the Game, and Development Elinor Ostrom 207 Comments Robert Klitgaard 235 Margaret Levi 241 Floor Discussion 247 Is Growth in Developing Countries Beneficial to Industrial Countries? Richard N. Cooper 249 Comments Willem H. Buiter 276 MatthewJ. Slaughter 284 Floor Discussion 292 Fiscal Decentralization Fiscal Federalism and Decentralization: A Review of Some Efficiency and Macroeconomic Aspects Vito Tanzi 295 Comments Charles E.

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Annual World Bank Conference on Development Economics, Part 489 by World Bank

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