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Index of Macroeconomic Performance for a Subset of Countries: A Kaldorian Analysis from the Magic Square Approach Focusing on Brazilian Economy in the Period 1997-2012

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  • ViniÌ cius de Azevedo Couto Firme

    () (Graduate Program of Applied Economics, Federal University of Juiz de Fora, Brazil)

  • JoaniÌ lio Rodolpho Teixeira

    () (Department of Economics, University of BrasiÌ lia, Brazil)

Abstract

This paper aims to evaluate the macroeconomic performance of some chosen countries in the period 1997-2012 using the four variables that compose the “magic square†diagram suggested by Nicholas Kaldor (1971). In order to avoid problems with the variables’ scale, the standardized “Index of Economic Welfare†created by ReneÌ A. Medrano-B and JoaniÌ lio R. Teixeira (2013) was utilized. The results showed a good performance of China and the Asian countries. Furthermore, in spite of the impact of the crises of 1998 and 2008 into Russia, this country presented a good recuperation and achieved a high index just after these crises. The Brazilian performance was somewhat surprising. The country showed a low growth rate and a progressive current account deficit, both typical of developed nations, along with a high inflation, typical of developing countries. A positive aspect seems to be the country’s capability of avoiding external crises, like the verified in 2008-2009.

Suggested Citation

  • ViniÌ cius de Azevedo Couto Firme & JoaniÌ lio Rodolpho Teixeira, 2014. "Index of Macroeconomic Performance for a Subset of Countries: A Kaldorian Analysis from the Magic Square Approach Focusing on Brazilian Economy in the Period 1997-2012," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 61(5), pages 527-542, October.
  • Handle: RePEc:voj:journl:v:61:y:2014:i:5:p:527-542
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    References listed on IDEAS

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    1. Jean-Paul Fitoussi & Francesco Saraceno, 2013. "European economic governance: the Berlin–Washington Consensus," Cambridge Journal of Economics, Oxford University Press, vol. 37(3), pages 479-496.
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    3. Casimir Dadak, 2011. "Political Economy of the Euro Area Crisis," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(5), pages 593-604, December.
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    5. Issouf Samaké & Yongzheng Yang, 2011. "Low-Income Countries' BRIC Linkage; Are there Growth Spillovers?," IMF Working Papers 11/267, International Monetary Fund.
    6. Carlos A. Carrasco & Jesús Ferreiro, 2011. "Inflation Targeting and Economic Performance: The Case of Mexico," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 58(5), pages 675-692, December.
    7. Andrew Sharpe, 2004. "Literature Review of Frameworks for Macro-indicators," CSLS Research Reports 2004-03, Centre for the Study of Living Standards.
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    More about this item

    Keywords

    Normalized magic square; Kaldorian approach; Index of economic welfare;

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F1 - International Economics - - Trade

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