This volume rests on three thematic pillars: the limits of
conventional macroeconomics; the long-run agenda of structural
transformation and the development of capabilities. Islam and
Kucera highlight the tenuous links of conventional macroeconomics
with core development concerns. The chapters of this book enunciate
an empirical approach to track the various sources of structural
transformation and nurture the thesis that investment in
infrastructure leads to the inculcation of capabilities, broadly
defined to include knowledge accumulation, dissemination and
application. The editors reinterpret social protection from the
perspective of inclusive development and structural transformation.
The volume examines secular trends in the functional distribution
of income and explores their possible macroeconomic consequences by
developing a two-country macroeconomic model for open economies. It
seeks to establish whether growing inequality in many countries
combined with stagnant real incomes is one of the sources of the
global and financial crisis of 2007-2009.
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