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Rethinking Monetary and Financial Policy: Practical suggestions for monitoring financial stability while generating employment and poverty reduction

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  • Gerald Epstein

Abstract

As the world financial crisis deepens, the task of generating decent employment has taken on more urgency, yet now faces even more obstacles then before. Of course, a key component of the solution to the current crisis will be massive expansionary fiscal actions on the part of the rich countries, preferably in a coordinated fashion, but individually if necessary. More aid and support from the rich countries and international institutions to the developing world will also be necessary to avoid a very serious, negative shock for the world's poorest and most vulnerable. In the short and medium run, as before the recent crisis, the key will be to generate large scale increases in decent work if developing countries and the world are to avoid a downward spiral into depression. But what macroeconomic policy frameworks should be used to design policies to address this crises both in the short and in the medium terms? What is clear is that to design and carry out these employment-oriented macroeconomic policies, the old neo-libereal orthodoxy must be abandoned, and policy makers must look for other policy frameworks to inform their macroeconomic and financial policies. In this paper, Epstein summarize employment oriented macroeconomic and financial policies that governments in developing countries can adopt to help promote more and better employment as a key to reducing poverty over the medium to long run.

Suggested Citation

  • Gerald Epstein, 2009. "Rethinking Monetary and Financial Policy: Practical suggestions for monitoring financial stability while generating employment and poverty reduction," Published Studies ilo_epstein11_09, Political Economy Research Institute, University of Massachusetts at Amherst.
  • Handle: RePEc:uma:perips:ilo_epstein11_09
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    References listed on IDEAS

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    1. repec:ilo:ilowps:478309 is not listed on IDEAS
    2. Rick Rowden, 2010. "Poverty reduction is not development," Review of African Political Economy, Taylor & Francis Journals, vol. 37(126), pages 503-516, December.
    3. Guerra, Maria Lucia., 2012. "Implications of the recent macroeconomic policies on employment and labour market outcomes in Peru," ILO Working Papers 994783093402676, International Labour Organization.
    4. Ortiz, Isabel. & Cummins, Matthew. & Capaldo, Jeronim. & Karunanethy, Kalaivani., 2015. "The decade of adjustment : a review of austerity trends 2010-2020 in 187 countries," ILO Working Papers 994890453402676, International Labour Organization.
    5. van Waeyenberge, Elisa. & Bargawi, Hannah., 2011. "Macroeconomic policy for "full and productive employment and decent work for all" : Uganda country study," ILO Working Papers 994658733402676, International Labour Organization.

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