Beyond Macroeconomic Stability: Structural Transformation and Inclusive Development

This thought-provoking volume goes beyond the narrow conceptualization of macroeconomic stability to explore the link between structural transformation and inclusive development. It examines three thematic pillars: the limits of conventional macroeconomics; the long-run agenda of structural transformation and the development of capabilities; and inequality and its macroeconomic consequences.

Using an empirical approach to track the various sources of structural transformation, the book builds on the thesis that investment in infrastructure leads to the inculcation of capabilities, broadly defined to include knowledge accumulation, dissemination and application. The volume examines secular trends in the functional distribution of income and explores their possible macroeconomic consequences by developing a two-country macroeconomic model for open economies. It also reinterprets social protection from the perspective of inclusive development and structural transformation. Further, through a combination of country-specific and global evidence as well as macroeconomic modeling and literature surveys, it seeks to answer the question of whether growing inequality in many countries combined with stagnant real incomes was one of the sources of the recent global crisis.

This book offers an essential new resource to economists, labour specialists, policy-makers, teachers, students and all those interested in the economics and theories of development.

Co-published with Palgrave Macmillan as part of the Advances in Labour Studies series.