The Speed of Adjustment and the Sequencing of Economic Reforms : Issues and Guidelines for Policymakers

Author/Editor:

Saleh M. Nsouli ; Mounir Rached ; Norbert Funke

Publication Date:

August 1, 2002

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper reviews the issues involved in determining the appropriate speed of adjustment and the sequencing of economic reforms, focusing on considerations relevant to policymakers. It points out that the debate between the protagonists of a high-speed approach and those favoring a gradualist approach is based primarily on the weights given to adjustment costs, policy credibility, reform feasibility, and risk assessment. It underscores the importance of appropriate sequencing and the impact of sequencing on the speed of adjustment and reforms. The paper concludes by highlighting factors that policymakers should consider when selecting their approach toward speed and sequencing.

Series:

Working Paper No. 02/132

Subject:

English

Publication Date:

August 1, 2002

ISBN/ISSN:

9781451855395/1018-5941

Stock No:

WPIEA1322002

Format:

Paper

Pages:

37

Please address any questions about this title to publications@imf.org