This conference will include the presentation and discussion of twelve papers and a closing panel
on policy-making issues. It will serve to bring together researchers working on the long-run effects of
macroeconomic volatility, with a particular emphasis on issues relevant to developing
The conference should increase our understanding on how development, or the lack thereof,
shapes the effect that volatility may have on growth and welfare.
The conference will include a combination of theoretical models, measurement analysis, and empirical
Some of the questions to be addressed are the following:
- Is volatility a source or a reflection of underdevelopment? What are the mechanisms through which volatility affects welfare? Is growth the main channel?
- What are precisely the underdevelopment characteristics that put poor countries more at risk? Is it mainly lack of financial development, excessive government-imposed regulations, or lack of international integration?
- Are economic crises the real culprit behind volatility's negative effect on growth and welfare?
- What are the most productive and conceptually sensible ways to measure and model macroeconomic volatility and its effects on growth and welfare?
- What policies and institutional safeguards can be implemented to deal with macroeconomic volatility and, in particular, with external and domestic crises?