Developmental Macroeconomics: New Developmentalism as a Growth Strategy

Cover
Title
Copyright
Contents
List of figures
List of tables
Preface
PART I Growth and constraints
	1 Theoretical traditions and the method
		Not neoclassical
		Differences from Keynesian and development economics
		The method
		Summary
	2 Some definitions and productive sophistication
		A classification of countries
		Productive sophistication and wages
		The “Lewis turning point”
		Summary
	3 Demand-led growth
		Supply-determined growth
		Growth determined by aggregate demand
		Development and technical progress
		Investment and technical progress
		Summary
	4 Foreign constraint
		Capacity constraint and distribution of income
		Foreign constraint and exchange rate
		Fall in the equilibrium growth rate
		Elasticities as endogenous variables
		Summary
	5 Value and price of the exchange rate
		Exchange-rate regime
		The long-term equilibrium of the exchange rate
		Value and price of foreign currency
		Which of the three equilibriums?
		Summary
	6 Overvaluation and access to the markets
		Tendency to overvaluation
		An overview of the causes of overvaluation
		Summary
	7 The Dutch disease
		The concept of the Dutch disease
		Two equilibrium exchange rates
		The severity of the Dutch disease
		Extended concept of the Dutch disease
		The Dutch disease and deindustrialization
		Why not specialize in commodities?
		The Dutch disease and the natural resource curse
	8 Domestic, not foreign savings
		Foreign savings
		Foreign savings and exchange rate appreciation
		Rate of substitution of foreign for domestic savings
		Summary
	9 Inflation, interest, and exchange rate appreciation
		Some comments on the theory of inflation
		Exchange rates, inflation, and real wage
		Rational expectations and inflation
		Exchange rate anchor policy
		High interest rate levels and appreciation
		Carry trade causing appreciation
		Budget deficits and overappreciation
		Summary
	10 Balance-of-payment crises
		Neoclassical explanations
		Foreign savings and financial crises
		Summary
	11 The closing of the model
		The Keynesian–structuralist model of growth
		Dutch disease and deindustrialization
		Excessive capital inflows
		Exchange rate overvaluation and falling behind
		What about the supply constraints?
		An alternative graphic closing
		Summary
PART II Policymaking
	12 Wage, export, or balanced-led?
		Domestic-led strategy
		Balanced strategy
		Export-led strategy
		Export-led strategy as a transition
		Reducing inequalities without reducing the profit rate
		Summary
	13 Neutralizing the Dutch disease
		Neutralization
		Who pays for the neutralization?
		Second-best forms of neutralization
		Difficulties
		Financial consequences of neutralization
		Summary
	14 Exchange rate policy
		The triangle of impossibilities
		Fix or float?
		Exchange rate policy
		Summary
	15 The transition to a high-development regime
		Breaking the low-growth equilibrium
		Reindustrialization
		Recovery of real wages
		Investment and domestic savings
		Summary
	16 Political economy of the once-and-for-all devaluation
		Why would workers accept a reduction in wages?
		Preference for immediate consumption
		Summary
	17 Comparing and summing up
		Development strategy
		Macroeconomic policy
References
Index