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Can Monetary Approaches to Stabilization Be Pro-Poor?

In: Pro-Poor Macroeconomics

Author

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  • Sheetal K. Chand

Abstract

Developing countries are frequently exposed to shocks that generate balance-of-payments problems, trigger bouts of inflation and disrupt incomes. These can cause the poverty ratio to rise, which is often further aggravated by inappropriate stabilization policies. A case in point is Indonesia, whose headcount ratio, i.e. the proportion of the population falling below the national poverty line, jumped from eight to 19 percentage points during the recent East Asian crisis. Another example is Mexico, for whom the poverty ratio rose from 15 to 21 percentage points at the time of its 1994/5 currency crisis. Similar episodes are to be found in many other countries.

Suggested Citation

  • Sheetal K. Chand, 2006. "Can Monetary Approaches to Stabilization Be Pro-Poor?," Social Policy in a Development Context, in: Giovanni Andrea Cornia (ed.), Pro-Poor Macroeconomics, chapter 3, pages 49-74, Palgrave Macmillan.
    • Handle: RePEc:pal:sopchp:978-0-230-62790-1_3
    DOI: 10.1057/9780230627901_3
    as

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