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Most macroeconomic analyses of developing countries either assumed that developed country macroeconomics provided an adequate toolkit, or focused on stabilisation and structural adjustment. This excellent new textbook develops a macroeconomic analysis specifically focused on the special features of developing countries and thus allows students and policy-makers to understand short-run and long-run macroeconomic policy-making to promote development and economic stability.
Stephan Klasen, Professor of Economics, Gottingen University
The difference between the macroeconomics of the developed and developing countries is not merely the fact that they are focussed on aggregate demand and aggregate supply respectively. Over the years, it has become clear that both types of economies have to concern themselves with demand and supply conditions, albeit with differences in depth. What must distinguish the models of these different economies is the stylisation of their underlying structures and institutions and their overall concerns. The author argues that the structural and institutional features of developing countries must have a bearing on the macroeconomics applied to them. Issues of poverty, equality agrarian change must be accorded higher priority in the models for developing countries. Although the book is based on a structuralist-Keynesian approach, it extensively and fairly discusses other schools of thought, making this lucid book highly recommendable as a textbook.
Thandika Mkandawire, Professor of African Development, London School of Economics
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