Structuralist macroeconomics and the new developmentalism

• Main Author: Bresser-Pereira, Luiz Carlos
• Publication Date: 2012
• Language: eng
• Source: Repositório Institucional do FGV (FGV Repositório Digital)
• DOI: 10.1590/S0101-31572012000300001
• Download full: http://hdl.handle.net/10438/25004; https://www.scopus.com/inward/record.uri?eid=2-s2.0-84867605523&doi=10.1590%2fS0101-31572012000300001&partnerID=40&md5=27977c547d79812613e8f759cb8519e4
• topic: Development macroeconomics; Developmentalism; Exchange rate; Structuralism; Economia; Taxas de câmbio; Estruturalismo; Macroeconomia

This paper first presents some basic ideas and models of a structuralist development macroeconomics that complements and actualizes the ideas of the structuralist development economics that was dominant between the 1940s and the 1960s. A system of three models focusing on the exchange rate (the tendency to the cyclical overvaluation of the exchange rate, a critique of growth with foreign savings, and new a model of the Dutch disease) shows that it is not just volatile but chronically overvalued, and for that reason it is not just a macroeconomic problem; as a long term disequilibrium, it is in the core of development economics. Second, it summarizes 'new developmentalism' - a sum of growth policies based on these models and on the experience of fast-growing Asian countries.