Page content
Trade and Development Report, 2010
The Trade and Development Report 2010 makes recommendations for a reorientation of
macroeconomic policies and institution building aimed at strengthening domestic demand. This would require monetary policy to keep interest rates low in order to facilitate the financing of fixed investment, as well as a well-conceived countercyclical fiscal policy. Appropriate monetary and fiscal policies should be combined with incomes policies which ensure that mass incomes rise in line with average productivity growth and a national inflation target. The adoption of such an incomes policy would involve a set of instruments and institution-building measures, such as collective bargaining arrangements among workers´ and employers´ associations, minimum wages or public employment schemes.
macroeconomic policies and institution building aimed at strengthening domestic demand. This would require monetary policy to keep interest rates low in order to facilitate the financing of fixed investment, as well as a well-conceived countercyclical fiscal policy. Appropriate monetary and fiscal policies should be combined with incomes policies which ensure that mass incomes rise in line with average productivity growth and a national inflation target. The adoption of such an incomes policy would involve a set of instruments and institution-building measures, such as collective bargaining arrangements among workers´ and employers´ associations, minimum wages or public employment schemes.