Macroeconomic policy regimes and the dynamics of demand-led growth regimes in advanced and emerging economies

Juan Manuel Campana and Eckhard Hein

No PKWP2611, Working Papers from Post Keynesian Economics Society (PKES)

Abstract: This paper investigates the drivers of economic growth by focusing on macroeconomic policy regimes (MPRs) as a key dimension of demand and growth regime (DGR) and growth model (GM) analysis. Building on Campana and Hein’s (2026) results on demand-led growth decomposition based on the national income and financial accounting (NIFA) and the Sraffian supermultiplier (SSM) approaches for seven economies—Germany, Spain, Argentina, Brazil, India, South Africa, and Turkey—across the periods 2000–2007 and 2011–2019, this paper applies the MPR approach to understand the differences in DGRs and their respective changes. The paper thus contributes to post-Keynesian and comparative political economy literature. The analysis shows that the configuration and coordination of monetary, wage, fiscal, and external policies play a central role in shaping dominant sources of autonomous demand and explaining regime shifts over time. While some countries, such as Germany and India, display stability in their MPRs, DGRs, and dominant autonomous demand components, others—Spain, Brazil, South Africa, and Turkey—have undergone significant transformations driven by policy changes and external conditions. Overall, the findings highlight the explanatory power of MPR analysis in understanding growth trajectories and provide foundations for the examination of the political economy dimension of these trajectories.

Keywords: macroeconomic policy regimes; growth decomposition; post-Keynesian macroeconomics; growth drivers; growth models; demand and growth regimes (search for similar items in EconPapers)
JEL-codes: E11 E12 E60 F43 O57 (search for similar items in EconPapers)
Pages: 36
Date: 2026-04
New Economics Papers: this item is included in nep-inv, nep-mac and nep-pke
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