Structuralist macroeconomics and the new developmentalism

Bresser-Pereira, Luiz Carlos

doi:10.1590/s0101-31572012000300001

Cited by 36 publications

(11 citation statements)

References 3 publications

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“…There is increasing evidence that this kind of policy has proven effective for a number of East Asian countries (Sachs 1985;Gala 2008;Cimoli, Fleitas, and Porcile 2013). The undesirable long-run effects of FDI-driven Dutch disease must be faced and a larger consensus has been reached over that (Ros 2011;Bresser-Pereira 2012). This paper contributes to provide theoretical support to such positions.…”

Section: Policy Optionsmentioning

confidence: 90%

The Macroeconomics of a Financial Dutch Disease

Botta

2015

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in ABSTRACTWe describe the medium-run macroeconomic effects and long-run development consequences of a financial Dutch disease that may take place in a small developing country with abundant natural resources. The first move is in financial markets. An initial surge in foreign direct investment targeting natural resources sets in motion a perverse cycle between exchange rate appreciation and mounting short-and medium-term capital flows. Such a spiral easily leads to exchange rate volatility, capital reversals, and sharp macroeconomic instability. In the long run, macroeconomic instability and overdependence on natural resource exports dampen the development of nontraditional tradable goods sectors and curtail labor productivity dynamics. We advise the introduction of constraints to short-and medium-term capital flows to tame exchange rate/capital flows boom-and-bust cycles. We support the implementation of a developmentalist monetary policy targeting competitive nominal and real exchange rates in order to encourage product and export diversification.

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Section: Policy Optionsmentioning

confidence: 90%

The Macroeconomics of a Financial Dutch Disease

Botta

2015

SSRN Journal

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“…As noted in the Introduction, the core of the model presented in this paper is a macroeconomic simulation model built along structuralist lines (Taylor 1989;Ocampo et al 2009;Bresser-Pereira 2012). The model is documented in a separate paper (Kemp-Benedict et al 2018).…”

Section: Methodsmentioning

confidence: 99%

A Climate-Economy Policy Model for Barbados

Kemp-Benedict

Drakes²,

Canales

2020

Economies

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Small island developing states (SIDS), such as Barbados, must continually adapt in the face of uncertain external drivers. These include demand for exports, tourism demand, and extreme weather events. Climate change introduces further uncertainty into the external drivers. To address the challenge, we present a policy-oriented simulation model that builds upon prior work by the authors and their collaborators. Intended for policy analysis, it follows a robust decision making (RDM) philosophy of identifying policies that lead to positive outcomes across a wide range of external changes. While the model can benefit from further development, it illustrates the importance for SIDS of incorporating climate change into national planning. Even without climate change, normal variation in export and tourism demand drive divergent trajectories for the economy and external debt. With climate change, increasing storm damage adds to external debt as the loss of productive capital and need to rebuild drives imports.

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“…While the Argentine default in 2001 was expected 4 , its outcomes (i.e., suspension of debt payments to foreign creditors and the following debt restructuring) were not. Politically, the default opened the way to the theory of "new developmentalism", presented as the antithesis of neo-liberalism yet within a capitalist framework (Bresser-Pereira, 2012). Unexpectedly, the new government refused to restructure the debt in terms favorable to IMF and private bond holders.…”

Section: Background: Argentine Debt Restructuring 2005-presentmentioning

confidence: 99%

The Argentine Dilemma: “Vulture Funds” and the Risks Posed to Developing Economies

Doyran

2014

CRCP

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Post-crisis Argentina is a case study of crisis management through debt restructuring. This article examines how Argentina negotiated the external debt in the wake of the sovereign default in December 2001 and now confronts challenges posed by holdout creditors-the so called "vulture funds". It argues that debt restructuring has put a straitjacket on the national economy, making it virtually impossible for healthy growth short of a break with the international economic order. While Argentina has successfully restructured a $95 billion debt with an unprecedented "hair cut" (around 70% reduction in "net value of debt"), a sustainable growth appears out of reach as long as reliance on the government debt market prevails. In this cycle, the transmission belt of financial crisis to developing countries is characterized by the entry of highly speculative players such as hedge funds, conflicts of interests embedded in "sovereign debt restructuring" (SDR) and vulnerabilities associated with "emerging market debt".

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Structuralist macroeconomics and the new developmentalism

Cited by 36 publications

References 3 publications

The Macroeconomics of a Financial Dutch Disease

The Macroeconomics of a Financial Dutch Disease

A Climate-Economy Policy Model for Barbados

The Argentine Dilemma: “Vulture Funds” and the Risks Posed to Developing Economies

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