Macroeconomic Fluctuations in Developing Countries: Some Stylized Facts

Author/Editor:

C. John McDermott ; Eswar S Prasad ; Pierre-Richard Agénor

Publication Date:

March 1, 1999

Electronic Access:

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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 documents the main stylized features of macroeconomic fluctuations for 12 developing countries. Cross-correlations between domestic industrial output and a large group of macroeconomic variables (including fiscal variables, wages, inflation, money, credit, trade, and exchange rates) are presented. Also analyzed are the effects of industrial country economic conditions on output fluctuations in these countries. The robustness of the results is examined using different detrending procedures. The results indicate many similarities between macroeconomic fluctuations in developing and industrial countries (procyclical real wages; countercyclical variation in government expenditure) and some important differences (countercyclical variation in the velocity of monetary aggregates).

Series:

Working Paper No. 1999/035

Subject:

Business cycles Economic growth Economic sectors Foreign exchange Industrial sector Inflation Labor Prices Real effective exchange rates Real wages

English

Publication Date:

March 1, 1999

ISBN/ISSN:

9781451845334/1018-5941

Stock No:

WPIEA0351999

Pages:

45

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