Neostructuralism and macroeconomics for development

One of the fundamental responsibilities of the State in the field of economic and social development is for the overarching environment in which the producers and consumers of goods and services of the national economy operate, known as the macroeconomy. When designing the macroeconomic environment, two basic features should be borne in mind: that it should enable the full use of production resources, with sustainable domestic and external balances, and that it should support the building of new capacities. Among other conditions, domestic demand needs to evolve in step with production capacity, or potential GDP, and macroeconomic prices (particularly, the exchange rate) needs to be compatible with a sustainable external balance. This is what has been called macroeconomics for development, which is essential to developing a strategy for growth with equity.

Related Subject(s): Economic and Social Development