Macroeconomic Policies

Abstract

The global economic crisis has created an opportunity to rethink macroeconomics policies for development. Such 
rethinking is both necessary and desirable. It is essential to redefine macroeconomic objectives so that the 
emphasis is on fostering employment creation and supporting economic growth instead of the focus on price 
stability alone. It is just as important to rethink macroeconomic policies which cannot simply be used for the 
management of inflation and the elimination of macroeconomic imbalances, since fiscal and monetary policies 
are powerful and versatile instruments in the pursuit of development objectives. In doing so, it is essential to the 
overcome the constraints embedded in orthodox economic thinking and recognize the constraints implicit in the 
politics of ideology and interests.