IMF Working Papers

Macroeconomic Policies and Long-Term Growth: A Conceptual and Empirical Review

Author/Editor:

Delano Villanueva ; Mohsin S. Khan

Publication Date:

March 1, 1991

Summary:

This paper reviews the theoretical and empirical aspects of the relationship between macroeconomic policies and the long-run rate of growth of GNP. The macroeconomic policies examined include fiscal policies, monetary and interest rate policies, external policies, and policies to reform the goods and labor markets, including adjustments of producer prices and wages. In general, the effects of these policies on growth operate directly or indirectly through their influence on investment in physical and human capital, and on factor productivity. The available empirical evidence confirms the effects of specific macroeconomic and financial policies on long-run growth.

Series:

Working Paper No. 1991/028

Subject:

Exports External debt Financial services Human capital International trade Labor National accounts Private investment Real interest rates