Growth Policies and Macroeconomic Stability

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 s...

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Bibliographic Details
Published in:OECD Economic Policy Papers 2014-02 (8)
Main Authors: Sutherland, Douglas, Hoeller, Peter
Format: Article
Language:English
Subjects:
business cycles
croissance
cycles d’activité
economic policy
politique économique
volatility
volatilité
Online Access:Get full text
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Summary: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 longterm 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.
ISSN:2226-583X
DOI:10.1787/5jz8t849335d-en