Stabilization and Growth in Latin America: A Critique and Reconstruction from Post-Keynesian and Structuralist Perspectives

Since the 1980s, Latin American countries have initiated a re-orientation of economic policies in whose formulation and implementation the International Monetary Fund (IMF) and World Bank (WB) have played a key role. This book shows that the IMF/WB programmes have not achieved the expected results and allows the reader to understand the shortcomings and limitations of the orthodox approach. By analyzing the macro models that inspire policy based lending, the author argues that the weaknesses arise as a result of a questionable internal logic of the models, mistaken premises and a failure to account for the empirical evidence. The book claims and outlines an alternative Post-Keynesian and Structuralist framework to deal with stabilization and growth issues in Latin America. The basic model is based on important asymmetries among productive sectors and takes into account the existence of oligopolistic markets, money wage rigidities, income distribution and endogenous money. It is implied in this model the need to rethink the direction and overall form of economic policy.