Capital formation and the macroeconomic framework: a neostructuralist approach
One of the most characteristic features of Latin American economies during the 1980s was the low rate of capital formation. In addition, the rate of utilization of the available productive capacity exhibited a steep decline, carrying with it a drop in actual average productivity. These factors, which in fact bolster each other, account for the noticeable contrast between the slack economic growth in the 1980s and the dynamism exhibited by Latin American countries (LACs) in the three previous decades.
KeywordsExchange Rate Interest Rate Real Exchange Rate Real Interest Rate Aggregate Demand
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