Published October 2014 (Routledge). With Nelson Marconi and José Luís Oreiro. Developmental Macroeconomics offers a new approach to development economics and macroeconomics. It is tributary of the post Keynesian and the development economics traditions, but it is critical of both. In its core are the exchange rate and the current account, instead of the budget deficit and the interest rate. It is oriented to the long-term equilibrium of the five macroeconomic prices: the exchange rate, the profit rate, the interest rate, the wage rate and inflation. It is critical of the growth with foreign savings policy, and brings a new model of a major market failure: the Dutch disease.
Developmental Macroeconomics: New Developmentalism as a Growth Strategy
London: Routledge, 2014.
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Table of contents
Part I - Growth and constraints
Chapter 1 - Theoretical traditions and the method
Chapter 2 - Some definitions and productive sophistication
Chapter 3 - Demanded-led growth
Chapter 4 - Foreign constraint
Chapter 5 - Value and price of the exchange rate
Chapter 6 - Overvaluation and access to the markets
Chapter 7 - The Dutch disease
Chapter 8 - Domestic, not foreign savings
Chapter 9 - Inflation, interest, and exchange rate appreciation
Chapter 10 - Balance of payment crises
Chapter 11 - The closing of the model
Part II - Policymaking
Chapter 12 - Wage, export or balanced-led?
Chapter 13 - Neutralizing the Dutch disease
Chapter 14 - Exchange rate policy
Chapter 15 - The transition to a high-development regime
Chapter 16 - Political economy of the once-and-for-all devaluation
Chapter 17 - Comparing and summing up