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A Keynesian alternative to the Washington consensus policies for international development


  • John Marangos


The Washington consensus was identified as a neoliberal manifesto and received a vast amount of criticism. In response, lately, John Williamson has offered a new set of policies in the 'After the Washington Consensus'. The aim of this paper is to determine whether there has been any substantial change in the recommended policies, and to offer a Keynesian proposal. Due to space limitations, the Keynesian perspective developed concentrates on: the state interventionist policies used by the industrialised countries; the excessive priority given to price stability instead of full employment; recycling the country's savings back into the domestic economy in coordination with industrial policy and domestic financial regulation; supporting interest rate policies that aim at a stable and permanently low level of interest rates and to direct credit to specific parts of the economy; regulation of foreign banks and reinforcement of fair competition; and the role of globalisation in development and capital controls.

Suggested Citation

  • John Marangos, 2014. "A Keynesian alternative to the Washington consensus policies for international development," International Journal of Trade and Global Markets, Inderscience Enterprises Ltd, vol. 7(1), pages 67-85.
  • Handle: RePEc:ids:ijtrgm:v:7:y:2014:i:1:p:67-85

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    References listed on IDEAS

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    9. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
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    16. repec:hrv:faseco:30728041 is not listed on IDEAS
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