ABSTRACT
We started with a paradox. There is abundant evidence from around the world that, by most indicators, a policy strategy which maintains macroeconomic stability, that works through and strengthens markets and which is designed to take maximum advantage of international trade and capital movements, yields superior economic results when compared with feasible alternatives. And yet the adjustment programmes of the IFIs, enshrining precisely such a strategy, apparently produce limited results. How is this puzzle to be explained?
