Comments on 'Macroeconomic Policies, Instability and Growth in the World.'.

This paper is a significant addition to the recent literature that analyses empirically the impact of macroeconomic instability on long-term growth, using cross-country regression analysis, as well as complementing it with additional monographic analysis. The analysis performed here is broadly encompassing, in that it includes many different variables describing the stance and volatility of macroeconomic policy. I briefly present the main results, before describing a game-theoretic framework that may help to organise the discussion of this topic. Copyright 1998 by Oxford University Press.