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The Baker Hypothesis: Stabilization, Structural Reforms, and Economic Growth

[Symposium: Washington Consensus Revisited]

By Anusha Chari, Peter Blair Henry, and Hector Reyes

Journal of Economic Perspectives, Summer 2021

In 1985, James A. Baker III's "Program for Sustained Growth" proposed a set of economic policy reforms including, inflation stabilization, trade liberalization, greater openness to foreign investment, and privatization, that he believed would lead to fa...