Macroeconomic shocks

Macroeconomic shocks have been a significant feature for many countries, for example, the 1997 financial crisis in East Asia and its spillover effects, crises in Russia and Turkey, and repeated debt or financial crises in Latin America. These shocks have been influential in shaping safety net policy in a number of the countries, with many current safety net programs having begun as initiatives to ameliorate crises. 

Ferreira, Francisco, Giovanna Prennushi, and Martin RavaUion. 1999. Protecting the Poor ftom Macroeconomic Shocks. Policy Research Working Paper 2160. Washington, DG World Bank. 

Glewwe, Paul, and Gillette Hall. 1998. Are Some Groups More Vulnerable to Macroeconomic Shocks Than Others Hypothesis Tests Based on Panel Data from VctvlT Journal of Development Economics 56 (1) 181—206. 

Transitory poor. Members of this group earn sufficient income in good years but fall into poverty, at least temporarily, as a result of idiosyncratic or covariate shocks ranging from an illness in the household or the loss of a job to drought or macroeconomic crisis. Transient poverty is apparently very substantial. Baulch and Hoddinott (2000) review a number of studies that show that, in a typical year, anything up to half of the US 1 per day poor may be transient poor. 

Blanchard, O. J., Gah, J. (2007). The macroeconomic effects of oil price shocks Why are the 2000s so different from the 1970s Centre for Economic Policy Research. Retrieved October, 2010, from http //papers.ssm.com/sol3/papers.cfm abstract id=l 140560. ... 

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