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Stabilization Policies and Technological Shocks: Towards a Sustainable Economic Growth Path

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  • Anelí Bongers

    (Department of Economics and Economic History, University of Málaga, 29013 Málaga, Spain)

  • Carmen Díaz-Roldán

    (Department of Economics, University of Castilla La-Mancha, 13071 Ciudad Real, Spain)

Abstract

The purpose of this paper is to explore the extent to which traditional economic policies can be oriented by sound practices. It is becoming widely accepted that sustainable economic growth (and not only economic growth) is the final target of economic policies, but some economic policies are applied just looking to the short-run without taking in account the long-run perspective. Our aim is to show how a sustainable economic policy-making would be possible, making compatible the stabilization of the economy in the short-run with a sustainable economic growth in the long-run. We confront the design of economic policies with the 17 goals of the 2030 Agenda. We argue that all sustainable development goals can be attained by the design and implementation of sustainable economic policies. Finally, to illustrate this point, we will conduct a simulation exercise to show under which combinations of demand policies technological shocks would promote a path of sustainable growth. Our results will provide a reference framework for a sustainable economic policy-making.

Suggested Citation

  • Anelí Bongers & Carmen Díaz-Roldán, 2019. "Stabilization Policies and Technological Shocks: Towards a Sustainable Economic Growth Path," Sustainability, MDPI, vol. 11(1), pages 1-19, January.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:1:p:205-:d:194651
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    References listed on IDEAS

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