Montiel, PeterServén, Luis2013-06-182013-06-182004-11https://hdl.handle.net/10986/13998In the 1990s macroeconomic policies improved in a majority of developing countries, but the growth dividend from such improvement fell short of expectations, and a policy agenda focused on stability turned out to be associated with a multiplicity of financial crises. The authors take a retrospective look at the content and implementation of the macroeconomic reform agenda of the 1990s. They review the progress achieved with fiscal, monetary, and exchange rate policies across the developing world, and the effectiveness of the changing policy framework in promoting stability and growth. The main lesson is that slow growth and frequent crises resulted, more often than not, from shortcomings in the reform agenda of the 1990s. These shortcomings essentially concern the depth and breadth of the macroeconomic reform agenda, its attention to macroeconomic vulnerabilities, and the complementary reforms outside the macroeconomic sphere.en-USCC BY 3.0 IGOADVERSE CONSEQUENCESADVERSE EFFECTSASSET SALESBALANCE OF PAYMENTSBANKING CRISESBANKING SYSTEMBENCHMARKSBORROWINGBORROWING COSTSCAPITAL ACCOUNTCAPITAL FLOWCAPITAL FLOWSCAPITAL FORMATIONCAPITAL INFLOWSCONTINGENT LIABILITIESCREDIBILITYCURRENCYCURRENT ACCOUNTCURRENT ACCOUNT DEFICITSDEBTDEBT MANAGEMENTDEBT/DEFAULT RISKDEVALUATIONDISINFLATIONEARNINGSECONOMIC GROWTHECONOMICSEFFECTIVE USEEMERGING MARKETSENDOGENOUS VARIABLESEXCHANGE RATEEXCHANGE RATE POLICIESEXCHANGE RATE POLICYEXCHANGE RATE VOLATILITYFINANCIAL ASSETSFINANCIAL CRISESFINANCIAL MARKETSFINANCIAL SECTORFINANCIAL SYSTEMFISCAL CONSOLIDATIONFISCAL COSTSFISCAL DEFICITSFISCAL GAPFISCAL POLICYFISCAL YEARSFOREIGN CURRENCYGDPGDP DEFLATORGNPGROWTH RATEHUMAN CAPITALIFISINCOMEINCOME COUNTRIESINCOME DISTRIBUTIONINDUSTRIAL ECONOMIESINFLATIONINFLATION RATEINFLATION RATESINSTITUTIONAL FRAMEWORKINTEREST RATESINTERNATIONAL FINANCIAL MARKETSMACROECONOMIC PERFORMANCEMACROECONOMIC POLICIESMACROECONOMIC POLICYMACROECONOMIC REFORMMACROECONOMIC STABILITYMACROECONOMIC STABILIZATIONMARKET ECONOMIESMATURITYMONETARY POLICYNATIONAL INCOMENET WORTHOUTPUTPAYMENTS ARREARSPOLICY ENVIRONMENTPRESENT VALUEPRIVATE CONSUMPTIONPUBLIC DEBTPUBLIC EXPENDITURESREAL EXCHANGE RATEREAL EXCHANGE RATESREAL GDPRETIREMENTSEIGNIORAGESOLVENCYSTABILIZATION POLICIESSTOCKSSYSTEMIC BANKING CRISESTAX COLLECTIONTERMS OF TRADEVALUATIONVOLATILITYVULNERABILITYWorld Bank10.1596/1813-9450-3456