Avoiding the stabilization trap : towards a macroeconomic policy framework for growth, employment and poverty reduction

Employment Paper 2003/53

Argues that policies based on the "Washington Consensus" have not yielded the desired results. Proposes a macroeconomic orthodoxy that fosters employment creation and a flexible fiscal policy, social protection measures that counter-balance economic insecurity and under-consumption, strengthens labour market institutions rather than labour market flexibility, and pursues a pro-poor development.