By Cadman Atta Mills
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Extra info for Analytical approaches to stabilization and adjustment programs
The first row and first column (the national accounts) depict the production account of the economy. As presented, the national accounts group the activities of all producing units together. Thus, they include the production of all incorporated enterprises (including financial institutions), unincorporated enterprises, producers of government services, and production by households, regardless of the type of good or service produced. Across row 1 the table describes how goods and services that are currently produced or imported are disposed of: goods produced domestically (Ymp) or imported (Z) in the current production period are used for government consumption (Cg), private consumption (Cp), exports (X), and government and private investment.
In contrast to the Fund, the World Bank framework focuses on the supply side of the economy: savings, investment, and real growth. Some of the identities and simple economic relationships of the earlier chapters serve as the building blocks for discussions on the possible development of alternative models, presented in chapter 6. The discussion focuses on the integration of the real and financial aspects of the earlier chapters under the heading of the Bank-Fund merged model. Furthermore, the two-gap framework is manipulated to arrive at a framework useful in estimating alternative requirements of foreign resources given a target growth rate.
A subsequent section surveys the evaluation methods that are useful in the valuation of unpaid household work. It must be mentioned, however, that the United Nations, for some time, has been considering (in addition to the existing national accounts) the idea of creating "satellite" accounts that will contain environmental accounting and valuation of unpaid household work. This, when operational, should help countries to estimate their expanded, or modified, GNP. Environmental Accounting and National Accounts Studies on environmental accounting invariably resort to the tools of microeconomic analysis.
Analytical approaches to stabilization and adjustment programs by Cadman Atta Mills