Ecomic crises arising from exchange rate volatility and high inflation have affected countries around the world, particularly those with developing ecomies. The usual response of countries during times of crisis has been to design and implement stabilisation packages aimed at controlling the exchange rate, stabilising inflation, and restoring ecomic fundamentals. The stabilisation attempts pursued in Latin America, Africa and Eastern Europe since the 1970s have motivated an interesting literature debating which strategy to adopt in order to achieve stabilisation and evaluate the merits of institutions such as the International Monetary Fund (IMF), the World Bank (WB) and the International Development Bank (IDB) in assisting countries during these efforts. Provided that times of crisis and volatility will affect the traditional benchmarks used by ecomists, adjusting the basic ecomic framework to account for such structural changes is of paramount importance. This book makes an important contribution to this debate by providing a comprehensive review of the literature on stabilisation, and by extending analytical models to account for the shortcoming of crises, in an effort to test their relevance across developing countries. The essays in this volume will be of interest to policy makers, professional ecomists and students for their measurable implications and as a guide for further research in the literature.
Peter A. Prazmowski is a consultant on financial and economic strategy for several private and public institutions in the Dominican Republic and the Caribbean. He has been a member of the Council of Economic Advisors of the President of the Dominican Republic, and is currently a member of the Economic Counsel of the American Chamber of Commerce of the Dominican Republic. Dr Prazmowski has published in various professional academic journals and has a co-authored a book entitled Essays on Macroeconomics in the Dominican Republic and Developing Economies. He holds a PhD in Economics from Kingston School of Economics in the UK, a Chevenning MS from the London School of Economics in the UK, and a BS from the Wharton School at the University of Pennsylvania in the US.