01687cas a2200241 a 4500 AALejournalIMF010140 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451924619 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Macroeconomic Adjustment in Developing Countries. Washington, D.C. : International Monetary Fund, 1988. 1 online resource (30 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students The paper deals with the two parts of the short-run adjustment problem in developing countries: the improvement of the current account and the reduction of inflation, the main cause in both cases being usually a fiscal deficit. It is shown how the two parts are related. Distinctions are made between the primary adjustment cost, which is inevitable, and the secondary cost which results, for example, from failure to devalue or from real wage rigidity. A sectoral cost benefit analysis is suggested. Reducing inflation involves both an inflation tax replacement and a price adjustment problem, and 'heterodox' policies designed to deal with the latter are analyzed. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1988/013 Full text available on IMF http://elibrary.imf.org/view/journals/001/1988/013/001.1988.issue-013-en.xml IMF e-Library