increase domestlc capita!. 'lnvestment. Such hypothetical policy actlons appear to be most effective i.n raising econonlc groeth ratesc by O.72 percehtage points in aleveloping countries and by 0.13 percentage points in the developed couitrles (seetable 22). 8. The dollar deprecistion €cenario I3t. This scenario, simulated wlth the econometric models of ProJect LINK, assumesa rapid depreciation of the alollar (by 10 per cent ln 1985 and 20 per cent in 1986, over and above the moderate depreclation assumed ln the baseline scenario). caused by a precipitous net capltal outflon from the United States, accompanied by an increase in thort-term interest rates in the United Stateg and a rise in oil priceso.Nro/5L9 Eng 1i sh Page 55 to compensate for the dollar tlepreciation. As a result, tbe industrial countri'esl cDP growth rate rdoulat be reduced by 0.4 Percentage points in 1985-1990 compared wlth the baseline (with more severe effects on the unibed states and Japan than on western Europe), and that of Ehe developinq countries lrould be reduced by 0.2 percentage points, while the GDP growth rate of the centrally planned econonies woulal be little affected, The volume of rrorld trade would decreaEe by 0.3 percencage polnts during 1985-1990 conpa red sith the baseline proj ections ' Inflation rates in local currencies in the oEcD countrles would be looered by 0.5 percentage points, white the unemploynent rate uould be raised by 0.5 percentage points, with (bre aeveral adverse effects on ernp!.oyment ih the united sta tes. 9. Compoaite scenarios 132. In adalition to the inalividual policy scenarios described above, a number of composite scenarios, each one consiating of several of the individual policy scenariog, have atso been simulateal with both the Project LINK an't the Fugi oodels. The impact of these comPosite scenarios on the GDP growth rate of the
**Analysis**
The text discusses various policy scenarios and their potential impact on economic growth rates, inflation rates, and employment rates in different countries. It appears to be focused on macroeconomic issues rather than specific sectors or industries. The language used is technical and econometric, suggesting a focus on economic development and policy-making.

**Category**
Economic development, International trade