A conceptual framework for adjustment policies

This paper begins by examining the existing conceptual framework for stabilization policies and inquires into the question as to an appropriate framework for adjustment policies. Next, the instruments of adjustment policies are briefly reviewed; followed by a discussion of the principal types of policies, including policies aimed at improving the use of existing resources, increasing savings and investment, and ensuring an efficient choice of investments. Furthermore, brief consideration is given to the coordination of stabilization and adjustment policies and to adjustment with equity.