From classical developmentalism and post-Keynesian macroeconomics to new developmentalism

Vol. 39 No. 2 (2019)

Apr-Jun / 2019
Published April 1, 2019
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How to Cite

Bresser-Pereira, Luiz Carlos. 2019. “From Classical Developmentalism and Post-Keynesian Macroeconomics to New Developmentalism”. Brazilian Journal of Political Economy 39 (2), 187-210. https://doi.org/10.1590/0101-31572019-2966.

From classical developmentalism and post-Keynesian macroeconomics to new developmentalism

Luiz Carlos Bresser-Pereira
Emeritus professor of Fundação Getulio Vargas, São Paulo/SP, Brasil.
Brazilian Journal of Political Economy, Vol. 39 No. 2 (2019), Apr-Jun / 2019, Pages 187-210

Abstract

New developmentalism was a response to the inability of classical developmentalism and post-Keynesian macroeconomics in leading middle-income countries to resume growth. New developmentalism was born in the 2000s to explain why Latin American countries stopped growing in the 1980s, while East Asian countries continued to catch up. This paper compares new developmentalism with classical developmentalism, which didn’t have a macroeconomics, and with post-Keynesian economics, whose macroeconomics is not devoted to developing countries. And shows that to follow the East Asian example is not enough industrial policy, it is also necessary a macroeconomic policy that sets the five macroeconomic prices right, rejects the growth with foreign savings policy, and keeps the macroeconomic accounts balanced.

JEL Classification: O10; O11; B29.


Keywords: Classical developmentalism, post-Keynesian macroeconomics, East Asian countries, Latin American countries