Man versus mother nature
Finance & Development, March 2014, pp. 44-47:
This article discusses how forward-thinking macroeconomic policy can help countries prepare for and mitigate the eventual blow of natural disasters. This research finds that good macroeconomic policies before and after shocks make a difference. The budget for emergency spending helps crisis mitigation and resolution, insurance coverage and low public debt bolster government spending flexibility if reconstruction needs arise, and public investment in risk reduction pays off over time.