Stephan Haggard Referenced on Debt Crises
The Good Times Might Never Come
06/05/2012
Michael Heller,
Project Syndicate
In a BBC interview last week Paul Krugman said: “a full employment economy is by far the best environment in which to make structural adjustment; you can see that historically”.
It’s a claim that fails the tests of theory and evidence.
In the lexicon of international organizations the term structural adjustment describes a mix of regulatory and economic reforms intended to restore the sustainability of market-oriented economic growth after onset of crisis. Adjustment includes measures to restore balance of payments, promote exports, macroeconomic stabilization, public debt and budget deficit reduction, elimination of wage and price distortions, privatization, and the relevant institutional reforms of law and regulation (the sequence is disputed).
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Stephan Haggard is the director of the Korea-Pacific Program at IR/PS, where he specializes in the Korean economy. In 2011 Haggard published Witness to Transformation: Refugee Insights into North Korea with co-author Marcus Noland, with whom he had previously authored Famine in North Korea: Markets, Aid, and Reform. Dr. Haggard writes the "North Korea: Witness to Transformation" blog at the Peterson Institute for International Economics.
