“…The macroeconomic component of new developmentalism theory highlights the importance of maintaining macroeconomic prices (inflation rate, interest rate, exchange rate, wage rate and profit rate) at the correct levels for the catching-up process to occur based on the growth of the productive structure -that is, for a structural change towards greater participation in manufacturing and high value--added services (Marconi and Brancher, 2017). Therefore, in addition to ensuring public order, public education, promotion of science and technology, and investments in infrastructure, the state must also ensure that macroeconomic prices are at the correct levels, specifically at levels that allow the production of high value--added goods to become competitive (Bresser-Pereira, Oreiro, and Marconi, 2016).…”