Exploring macroeconomic frameworks conducive to structural transformation of sub-Saharan Economies

Nissanke, Machiko

Abstract

The conventional macroeconomic policy framework, with its focus on maintaining macro stability is inadequate for the purpose of accelerating the structural transformation of African economies. This ‘policy position’ paper explores an alternative framework, wherein macroeconomic policies are applied coherently to one another and in coordination with other policies, and a resolution of the short-run trade-off between the macroeconomic policy objectives of stabilisation and development is sought in terms of a long-term development approach for enhancing both aggregate demand and supply capacity as an anchor for navigating a path towards structural transformation. After presenting a working definition of structural transformation, the paper presents the core elements of such a framework and discusses the corresponding policy agenda under five headings. Using this agenda as a benchmark, it discusses how to approach the debates on fiscal, monetary and financial policies, avoiding the limitations of standard macroeconomic literature, in order to make those policies conducive to Africa’s structural transformation.

Citation

Nissanke, M. (2019). Exploring macroeconomic frameworks conducive to structural transformation of sub-Saharan Economies. Structural Change and Economic Dynamics, 48, 103-116. https://doi.org/10.1016/j.strueco.2018.07.005

• Journal Article Type: Article
• Acceptance Date: Jun 10, 2018
• Online Publication Date: Aug 8, 2018
• Publication Date: Mar 1, 2019
• Deposit Date: Aug 22, 2018
• Publicly Available Date: Aug 22, 2018
• Journal: Structural Change and Economic Dynamics
• Print ISSN: 0954-349X
• Electronic ISSN: 1873-6017
• Publisher: Elsevier
• Peer Reviewed: Peer Reviewed
• Volume: 48
• Pages: 103-116
• DOI: https://doi.org/10.1016/j.strueco.2018.07.005
• Keywords: Structural Transformation, Macroeconomic Frameworks, African Development, Fiscal Sustainability and Legitimacy, Monetary and Financial Policy for Development
• Related Public URLs: https://doi.org/10.1016/j.strueco.2018.07.005