El debate sobre la organización de la política económica en un mundo dominado por la finanza: implicaciones para México

Santiago Capraro, Carlo Panico and Luis Daniel Torres-González
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Carlo Panico: UNAM
Luis Daniel Torres-González: Benemérita Universidad Autónoma de Puebla, UNAM

El Trimestre Económico, 2023, vol. 90 (2), issue 358, 409-459

Abstract: The paper shows that the liberalization processes and the expansion of the financial sector have changed profoundly the economic, social, and political life of the world economy. New phenomena have arisen, such as the supremacy of the monetary authorities over the fiscal ones and the transformation of national governments into creditors of the central banks. These changes have generated negative consequences, like financial instability, an increase in the number of crises, low growth, and distributive inequality. The article clarifies the need to modify relevant aspects of economic policy. It argues that attributing the role of leaders to the monetary authorities in the coordination of economic policies harms growth and distributive equity. The work claims that discretion should be returned to fiscal policy and that public intervention should guide the evolution of the productive structure. To restore discretion to fiscal policy, the quality of public policies and the levels of trust between the different institutions of national economic policy and between financial market operators and government authorities must be improved.

Keywords: Financialisation; monetary policy; fiscal policy; international reserves; economic growth. (search for similar items in EconPapers)
JEL-codes: E52 E58 E63 G18 G28 O23 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:elt:journl:v:90:y:2023:i:358:p:409-459

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DOI: 10.20430/ete.v90i358.1751

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