Macroeconomic Challenges of Fragility and Policies for Stability and Growth

2026

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AI-generated summary

1) Fragility poses significant economic and policy challenges with costly global spillovers, impacting macroeconomic stability, growth, and development, and requires tailored policy responses.
2) This paper analyzes the macroeconomic challenges of fragility, including its impact on long-term growth, vulnerability to shocks, and the role of weak institutions and conflict. It also outlines policy priorities for strengthening government functions and fostering stability and growth in fragile contexts.
3) The paper examines the heterogeneity of fragile states, the interplay of fragility with structural factors like conflict and resource dependence, and the effectiveness of international support and capacity development.
Tags: Fragility, Macroeconomic Stability, Economic Growth, Policy, International Support

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