In Dimitri B. Papadimitrious, ed. (2014) Contributions to Economic Theory, Policy, Development and Finance: Essays in Honor of Jan A. Kregel. Londres: Palgrave Macmillan: 196-206; republished in Keynesian Brazilian Review 1 (2015) February: 35-43. Texto para Discussão EESP/FGV 366, maio 2014.
In this paper I argue that, in developing countries,
sufficient aggregate demand is not enough to motivate investment and achieve full employment.
Besides, according to the Keynesian developmental
macroeconomics under construction, competent business enterprises must have access to that demand – access which is denied to most of them because developing countries face the tendency to the cyclical and chronic overvaluation of the exchange rate.