Beyond macroeconomic stability : structural transformation and inclusive development / edited by Iyanatul Islam, David Kucera.

Format:

Book

Government document

Contributor:

Islam, Iyanatul, 1953-

Kucera, David, 1960-

Series:

Advances in labour studies

Language:

English

Subjects (All):

Structural adjustment (Economic policy)--Developing countries.

Structural adjustment (Economic policy).

Developing countries.

Economic stabilization--Developing countries.

Economic stabilization.

Developing countries--Economic policy.

Economic policy.

Physical Description:

xiv, 342 pages : illustrations ; 23 cm.

Place of Publication:

Basingstoke : International Labour Office, 2013.

Summary:

This thought-provoking volume goes beyond the narrow conceptualization of macroeconomic stability in the conventional framework and explores the link between structural transformation and inclusive development. It examines three thematic pillars: the limits of conventional macro-economics; the long-run agenda of structural transformation and the development of capabilities; and inequality and its macroeconomic consequences. The first pillar delineates the nature of the macroeconomic policy advice dispensed by the International Monetary Fund to developing countries. It builds up an evidence-based case against fiscal consolidation and critically examines whether developing countries should set low, singledigit inflation targets to promote growth and employment. The second pillar uses an empirical approach to track the various sources of structural transformation and applies it to sectoral data for a large number of countries. It goes on to illustrate how investment in infrastructure can lead to the inculcation of capabilities, and reinterprets social protection from the perspective of inclusive development and structural transformation. The final pillar deals with inequality, examining trends in the functional distribution of income and exploring their possible macroeconomic consequences by developing and applying a two-country macroeconomic model for open economies. The volume closes by addressing the evidence for and against the view that growing inequality as well as stagnant real incomes were important causes of the post-2007 crisis. It concludes that developments in real incomes are of neglected but fundamental importance in understanding rising household debt and the subprime mortgage crisis in the United States, and so the crisis more generally. This book offers a valuable new resource to economists, policy-makers and all those interested in inclusive economic development. Book jacket.

Contents:

Part I Limits of the Conventional Macroeconomic Policy Framework

1 Dispensing Macroeconomic Policy Advice to Developing Countries: The IMF's Article IV Consultations / Iyanatul Islam Islam, Iyanatul, Ishraq Ahmed Ahmed, Ishraq, Rathin Roy Roy, Rathin, Raquel Ramos Ramos, Raquel 31

2 Fiscal Consolidation: Issues and Evidence / Anis Chowdhury Chowdhury, Anis, Iyanatul Islam Islam, Iyanatul 72

3 Should Developing Countries Target Low, Single-Digit Inflation to Promote Growth and Employment? / Sarah Anwar Anwar, Sarah, Iyanatul Islam Islam, Iyanatul 98

Part II Structural Transformation and the Development of Capabilities

4 Structure Matters: Sectoral Drivers of Growth and the Labour Productivity-Employment Relationship / David Kucera Kucera, David, Leanne Roncolato Roncolato, Leanne 133

5 Creating Productive Capacities, Employment and Capabilities for Development: The Case of Infrastructure Investment / Irmgard Nübler Nübler, Irmgard, Christoph Ernst Ernst, Christoph 198

6 Investing in People: Extending Social Security through National Social Protection Floors / Christina Behrendt Behrendt, Christina 228

Part III Inequality, Wages and their Macroeconomic Consequences

7 Wages and Growth in Open Economies: A Policy Dilemma? / Massimiliano La Marca Marca, Massimiliano La, Sangheon Lee Lee, Sangheon 263

8 Keeping up with the Joneses or Keeping One's Head above Water? Inequality and the Post-2007 Crisis / David Kncera Kncera, David, Rossana Galli Galli, Rossana, Fares Al-Hussami Al-Hussami, Fares 288.

Notes:

Includes bibliographical references and index.

ISBN:

9781137379245

1137379243

OCLC:

852225056