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From Financieristic to Real Macroeconomics: Seeking Development Convergence in Emerging Economies

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dc.contributor.authorFfrench-Davis, Ricardo
dc.date.accessioned2017-08-28T17:13:46Z
dc.date.available2017-08-28T17:13:46Z
dc.date.issued2008
dc.description.abstractMacroeconomic "fundamentals" are a most relevant variable for economic development. However, there is wide misunderstanding about which are the "sound macroeconomic fundamentals," contributing to sustained economic growth. The approach in fashion in the mainstream world and international finance institutions (IFIs) emphasizes macroeconomic balances of two pillars: low inflation and fiscal balances. The author calls it financieristic macroeconomic balances. Additionally, a frequent assertion in the conventional literature is that an open capital account contributes to impose macroeconomic discipline in emerging economies (EEs). There is strong evidence that financieristic balances have not provided a macroeconomic environment contributing to sustained growth. A third pillar must be added, linked to the productive side of the economy. The behavior of aggregate demand, at levels consistent with potential gross domestic product (GDP), is a crucial part of a third pillar for real macroeconomic balances, which has frequently failed in neoliberal experiences. Similarly crucial parts are well-aligned macro-prices, like interest and exchange rates. Frequently, these prices and aggregate demand have behaved as outliers, as reflected in economies working either well below potential GDP (the most frequent result), or overheated, with a booming aggregate demand and a large external deficit. This paper analyses alternative macroeconomic environments faced by firms and workers in the productive side of the economy (the producers of GDP), and the interrelationship between financial and real variables. The author analyzes alternative structural countercyclical fiscal policies, intermediate exchange rate policies, and capital account approaches.en
dc.identifierhttp://documents.worldbank.org/curated/en/642921468348846547/From-financieristic-to-real-macroeconomics-seeking-development-convergence-in-emerging-economies
dc.identifier.doi10.1596/28018
dc.identifier.urihttps://hdl.handle.net/10986/28018
dc.languageEnglish
dc.language.isoen_US
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesCommission on Growth and Development Working Paper;No. 44
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectABSORPTIVE CAPACITY
dc.subjectADVANCED ECONOMIES
dc.subjectAGGREGATE DEMAND
dc.subjectAGGREGATE SUPPLY
dc.subjectANNUAL GROWTH
dc.subjectAPPETITE FOR RISK
dc.subjectAVERAGE PRODUCTIVITY
dc.subjectBONDS
dc.subjectBUDGET DEFICITS
dc.subjectBUSINESS CYCLE
dc.subjectBUSINESS CYCLES
dc.subjectCAPITAL ACCOUNTS
dc.subjectCAPITAL FLIGHT
dc.subjectCAPITAL FLIGHTS
dc.subjectCAPITAL FLOWS
dc.subjectCAPITAL FORMATION
dc.subjectCAPITAL GAINS
dc.subjectCAPITAL INFLOWS
dc.subjectCAPITAL MARKETS
dc.subjectCAPITAL OUTFLOWS
dc.subjectCAPITAL STOCK
dc.subjectCENTRAL BANK
dc.subjectCOMPARATIVE ADVANTAGES
dc.subjectCOMPETITIVENESS
dc.subjectCONSUMERS
dc.subjectCREDIBILITY
dc.subjectCREDIT BOOM
dc.subjectCURRENCY
dc.subjectCURRENT ACCOUNT
dc.subjectCURRENT ACCOUNT BALANCE
dc.subjectCURRENT ACCOUNT DEFICIT
dc.subjectCURRENT ACCOUNT DEFICITS
dc.subjectDEBT
dc.subjectDEBT CRISIS
dc.subjectDEPRECIATION
dc.subjectDEVALUATION
dc.subjectDEVELOPMENT STRATEGIES
dc.subjectDISEQUILIBRIUM
dc.subjectDOMESTIC CURRENCIES
dc.subjectDOMESTIC CURRENCY
dc.subjectDOMESTIC DEMAND
dc.subjectDOMESTIC GOODS
dc.subjectDOMESTIC INTEREST RATES
dc.subjectDOMESTIC MACROECONOMIC POLICIES
dc.subjectDOMESTIC MARKETS
dc.subjectDOMESTIC PRICE
dc.subjectDOMESTIC PRICES
dc.subjectDOMESTIC SAVINGS
dc.subjectDOWNWARD PRESSURES
dc.subjectDURABLE GOODS
dc.subjectDUTCH DISEASE
dc.subjectECONOMETRICS
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC FLUCTUATIONS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC RENTS
dc.subjectECONOMIC SITUATION
dc.subjectECONOMIC STRUCTURES
dc.subjectEQUILIBRIA
dc.subjectEXCHANGE RATE ANCHOR
dc.subjectEXCHANGE RATE APPRECIATION
dc.subjectEXCHANGE RATE POLICIES
dc.subjectEXCHANGE RATE SYSTEMS
dc.subjectEXCHANGE RATES
dc.subjectEXPLANATORY VARIABLE
dc.subjectEXPORT MARKETS
dc.subjectEXPORTS
dc.subjectEXPOSURE
dc.subjectEXTERNAL DEFICIT
dc.subjectEXTERNAL DEFICITS
dc.subjectEXTERNAL FINANCING
dc.subjectEXTERNAL SHOCKS
dc.subjectEXTERNALITIES
dc.subjectFACTOR MARKETS
dc.subjectFINANCIAL ASSETS
dc.subjectFINANCIAL CRISES
dc.subjectFINANCIAL INSTABILITY
dc.subjectFINANCIAL INTERMEDIATION
dc.subjectFINANCIAL LIBERALIZATION
dc.subjectFINANCIAL MARKET
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL REFORMS
dc.subjectFINANCIAL SECTOR
dc.subjectFINANCIAL TRANSACTION
dc.subjectFISCAL BALANCE
dc.subjectFISCAL BALANCES
dc.subjectFISCAL DEFICITS
dc.subjectFISCAL DISCIPLINE
dc.subjectFISCAL POLICIES
dc.subjectFLEXIBLE EXCHANGE RATE
dc.subjectFLEXIBLE EXCHANGE RATE REGIMES
dc.subjectFOREIGN CURRENCY
dc.subjectFOREIGN CURRENCY MARKET
dc.subjectFOREIGN EXCHANGE
dc.subjectGDP
dc.subjectGLOBALIZATION
dc.subjectGROWTH RATE
dc.subjectGROWTH RATES
dc.subjectHUMAN CAPITAL
dc.subjectIMBALANCES
dc.subjectIMPORTS
dc.subjectINCOME
dc.subjectINCOMPLETE MARKETS
dc.subjectINDEBTEDNESS
dc.subjectINFLATION
dc.subjectINFLATION RATE
dc.subjectINFLATION TARGET
dc.subjectINFLATION TARGETING
dc.subjectINFLATION TAX
dc.subjectINFLATIONARY PRESSURES
dc.subjectINFLATIONARY PROCESSES
dc.subjectINTEREST RATE
dc.subjectINTEREST RATES
dc.subjectINTERMEDIATE EXCHANGE RATE
dc.subjectINTERNATIONAL CAPITAL MARKETS
dc.subjectINTERNATIONAL FINANCIAL INSTITUTIONS
dc.subjectINTERNATIONAL FINANCIAL MARKETS
dc.subjectINTERNATIONAL FINANCIAL SYSTEM
dc.subjectINTERNATIONAL INTEREST
dc.subjectINTERNATIONAL INTEREST RATES
dc.subjectINTERNATIONAL MARKET
dc.subjectINTERNATIONAL MARKETS
dc.subjectINTERNATIONAL TRADE
dc.subjectINVENTORY
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectINVESTMENT RATIO
dc.subjectINVESTMENT RATIOS
dc.subjectLABOR FORCE
dc.subjectLDCS
dc.subjectLEVEL OF INVESTMENT
dc.subjectLIQUID MARKETS
dc.subjectLIQUIDITY
dc.subjectLIQUIDITY CONSTRAINTS
dc.subjectLOCAL CURRENCY
dc.subjectMACROECONOMIC ADJUSTMENT
dc.subjectMACROECONOMIC ADJUSTMENTS
dc.subjectMACROECONOMIC CONDITIONS
dc.subjectMACROECONOMIC INSTABILITY
dc.subjectMACROECONOMIC MANAGEMENT
dc.subjectMACROECONOMIC POLICIES
dc.subjectMACROECONOMIC POLICY
dc.subjectMACROECONOMIC VARIABLES
dc.subjectMACROECONOMICS
dc.subjectMARKET ECONOMY
dc.subjectMARKET TRANSACTIONS
dc.subjectMONETARY POLICIES
dc.subjectMONETARY POLICY
dc.subjectMONETARY POLICY REGIME
dc.subjectMONEY SUPPLY
dc.subjectNATIONAL INCOME
dc.subjectNATURAL RESOURCES
dc.subjectNEGATIVE EXTERNALITIES
dc.subjectNEWLY INDUSTRIALIZED COUNTRIES
dc.subjectNOMINAL ANCHOR
dc.subjectOIL PRICE
dc.subjectOPEN CAPITAL ACCOUNT
dc.subjectOPEN ECONOMIES
dc.subjectOUTPUT GAP
dc.subjectOUTPUT GAPS
dc.subjectPERMANENT INCOME
dc.subjectPOTENTIAL OUTPUT
dc.subjectPOVERTY REDUCTION
dc.subjectPRICE FLUCTUATIONS
dc.subjectPRICE INDEX
dc.subjectPRICE STABILITY
dc.subjectPRIVATE CAPITAL
dc.subjectPRODUCTION FUNCTION
dc.subjectPRODUCTIVE ASSETS
dc.subjectPRODUCTIVE SYSTEMS
dc.subjectPRODUCTIVITY
dc.subjectPUBLIC DEFICITS
dc.subjectPUBLIC EXPENDITURE
dc.subjectPUBLIC INVESTMENT
dc.subjectPURCHASING POWER
dc.subjectRAPID GROWTH
dc.subjectRATE OF INFLATION
dc.subjectREAL EXCHANGE RATE
dc.subjectREAL EXCHANGE RATES
dc.subjectREAL INTEREST RATES
dc.subjectRECESSION
dc.subjectRECESSIONS
dc.subjectRELATIVE PRICES
dc.subjectRELATIVE WEIGHT
dc.subjectRESTRICTIVE MONETARY POLICIES
dc.subjectREVALUATIONS
dc.subjectRISK MANAGEMENT
dc.subjectSAVINGS
dc.subjectSLOW GROWTH
dc.subjectSTOCK MARKET
dc.subjectSTOCK PRICES
dc.subjectSUPPLY SIDE
dc.subjectSURPLUSES
dc.subjectTAX INCREASES
dc.subjectTEQUILA CRISIS
dc.subjectTOTAL FACTOR PRODUCTIVITY
dc.subjectTRADE LIBERALIZATION
dc.subjectTRADE POLICIES
dc.subjectTRADE REFORMS
dc.subjectTRADE SHOCKS
dc.subjectUNCERTAINTY
dc.subjectUNEMPLOYMENT
dc.subjectVALUE ADDED
dc.subjectVOLATILITY OF CAPITAL
dc.subjectWAGES
dc.subjectWEALTH
dc.subjectWORLD ECONOMY
dc.subjectWORLD INTEREST RATES
dc.subjectWORLD MARKETS
dc.titleFrom Financieristic to Real Macroeconomicsen
dc.title.subtitleSeeking Development Convergence in Emerging Economiesen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.date.disclosure2010-12-07
okr.date.doiregistration2025-04-15T11:18:30.707989Z
okr.doctypePublications & Research::Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/642921468348846547/From-financieristic-to-real-macroeconomics-seeking-development-convergence-in-emerging-economies
okr.guid642921468348846547
okr.identifier.externaldocumentum000334955_20101206235227
okr.identifier.internaldocumentum13203669
okr.identifier.report57743
okr.importedtrue
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/642921468348846547/pdf/577430NWP0Box353767B01PUBLIC10gcwp044web.pdfen
okr.topicMacroeconomics and Economic Growth::Macroeconomic Management
okr.topicFinance and Financial Sector Development::Currencies and Exchange Rates
okr.topicMacroeconomics and Economic Growth::Economic Stabilization
okr.topicMacroeconomics and Economic Growth::Economic Theory & Research
okr.topicPrivate Sector Development::Emerging Markets
okr.unitPoverty Reduction and Equity (PRMPR)
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