Macroeconomic Policies and Long-Term Growth: A Conceptual and Empirical Review
March 1, 1991
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Summary
This paper reviews the theoretical and empirical aspects of the relationship between macroeconomic policies and the long-run rate of growth of GNP. The macroeconomic policies examined include fiscal policies, monetary and interest rate policies, external policies, and policies to reform the goods and labor markets, including adjustments of producer prices and wages. In general, the effects of these policies on growth operate directly or indirectly through their influence on investment in physical and human capital, and on factor productivity. The available empirical evidence confirms the effects of specific macroeconomic and financial policies on long-run growth.
Subject: Exports, External debt, Financial services, Human capital, International trade, Labor, National accounts, Private investment, Real interest rates
Keywords: Asia and Pacific, Europe, expenditure ratio, Exports, GNP, Human capital, investment ratio, Middle East, potential GDP, Private investment, rate of change, rate of inflation, Real interest rates, Western Hemisphere, world market interest rate, WP
Pages:
46
Volume:
1991
DOI:
Issue:
028
Series:
Working Paper No. 1991/028
Stock No:
WPIEA0281991
ISBN:
9781451844566
ISSN:
1018-5941
