Macroeconomics for development in Latin America and the Caribbean: Some new considerations on countercyclicality
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The Macroeconomics for development blue print for Latin America and the Caribbean is articulated around two issues: an active strategy of productive development and a counter cyclical policy stance. Macroeconomic counter cyclicality refers to the management of the level of aggregate demand to dampen the fluctuations and volatility of real and nominal variables around their long-term trends. This paper argues that cycle and trend are interdependent and that, as a result, counter cyclical policies (i.e., aggregate demand policies) are not neutral to the long-run behaviour of economies.
Introduction .-- I. The long-run performance of Latin America: high volatility and low growth .-- II. The balance-of-payments dominance .-- III. Completing the Macroeconomics for development blue-print's view of countercyclicality .-- IV. Conclusion.
SerieSerie Financiamiento para el Desarrollo No. 246
United Nations SubtopicsMACROECONOMICS ; ECONOMIC DEVELOPMENT ; ECONOMIC POLICY ; BALANCE OF PAYMENTS
Country / RegionLATIN AMERICA AND THE CARIBBEAN