Economics at your fingertips  

Macroeconomic Stability and Inclusive Growth

Anna Ter-Martirosyan, Hamid Davoodi and Peter Montiel

No 2021/081, IMF Working Papers from International Monetary Fund

Abstract: We survey the literature on the relationship between macroeconomic stability and inclusive growth and identify gaps in our knowledge. We examine the role of macroeconomic policies (fiscal, monetary, macroprudential, and exchange rate) and measures of inclusiveness (income inequality, consumption inequality, wealth inequality, poverty, and unemployment) across countries at different income levels. Avoiding procyclical macroeconomic policies and mitigating macroeconomic volatility should be on the agenda of all policymakers concerned with promoting inclusive growth. The emerging theory and evidence suggest a strong role for macroeconomic policies in shaping inclusive growth, both in the short-run and the long-run. The two-way relationship between the macroeconomy and inequality underscores the challenge of identifying and estimating causal relationships. Models with heterogeneous agents have much to offer in this area.

Keywords: macroeconomic policy; inclusive growth; inequality; poverty; unemployment; heterogeneous agents (search for similar items in EconPapers)
Pages: 36
Date: 2021-03-19
New Economics Papers: this item is included in nep-fdg, nep-gro and nep-mac
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().

Page updated 2022-01-28
Handle: RePEc:imf:imfwpa:2021/081