THE ECONOMIC POLICY OF NEW DEVELOPMENTALISM

ABSTRACT The aim of this article is to discuss the application of the theoretical framework of the new developmentalism to the formulation of a macroeconomic policy proposal. Besides the discussion of the theoretical principles of the new developmentalism, the scenario of the last years is analyzed and, subsequently, a macroeconomic policy based on this approachis proposed. Particular emphasis is assigned to the relevance of maintaining the so-called macroeconomic prices at their correct level for the catching-up process based on the sophistication of the productive structure, that is, on the structural change towards larger shares of manufacturing and modern services in value added.