Poverty is a multidimensional problem that goes beyond economics to include, among other things, social, political, and cultural issues (see Chapter 3 “Poverty Data and Measurement” and Box 1). Therefore, solutions to poverty cannot be based exclusively on economic policies, but require a comprehensive set of well-coordinated measures. Indeed, this is the foundation for the rationale underlying comprehensive poverty reduction strategies.1 So why is there a chapter in the Sourcebook for Poverty Reduction Strategies on macroeconomic issues? Because economic growth is the single most important factor influencing poverty, and macroeconomic stability is essential for high and sustainable rates of growth.2 Hence, macroeconomic stability should be a key component of any poverty reduction strategy.