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Macroeconomic Policy for Growth and Poverty Reduction: An Application to Post-Conflict and Resource-Rich Countries

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  • Degol Hailu
  • John Weeks
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    Abstract

    A fundamental shift in macroeconomic policy thinking is taking place. This shift opens a space for implementing policies that promote growth and reduce poverty in developing countries. In this paper, policies for post-conflict and resource-rich economies are outlined. Fiscal policy would focus on revenue mobilization, scaling-up public investment, and preventing over-heating. Monetary policies would revive the financial sector, prevent inflationary pressures and stimulate private sector investment. Exchange rate policies should focus on achieving slow depreciation and maintaining international competitiveness. These policies should not be considered in isolation from each other, but in coordination.

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    File URL: http://www.un.org/en/development/desa/papers/2011
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    Bibliographic Info

    Paper provided by United Nations, Department of Economics and Social Affairs in its series Working Papers with number 108.

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    Length: 18 pages
    Date of creation: Jul 2011
    Date of revision:
    Handle: RePEc:une:wpaper:108

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    Web page: http://www.un.org/en/development/desa/working-papers.html
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    Keywords: Macroeconomics; fiscal policy; monetary policy; exchange rate policy; conflict; natural resources; economic development; heterodox economics;

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