Measuring the Effect of External Shocks and the Polic[y] Response to Them

By F. Desmond McCarthy, J. Peter Neary, Giovanni Zanalda

Measuring the Effect of External Shocks and the Polic[y] Response to Them
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How can the governments in Eastern Europe and developing countries reduce their vulnerability to such shocks? What are the appropriate policy responses? Here is a method for measuring the effect of external shocks on the current account, applied to the Philippines.

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