The paper shows that if long-run balance of payments equilibrium on current account is a requirement then a country's long run growth rate can be approximated by the ratio of the growth of exports to the income elasticity of demand for imports. The model fits well the experience of eighteen OECD...

The Author looks at the difference in growth rates among countries and argues that they can be traced to the strength of the balance of payments position, determined largely by the propensity to export relative to the propensity to import. Relative growth performance, thus, can be understood by...

Although in the current climate of inflation most are concerned with its negative repercussions, its virtues as a means of growth were once extolled by the likes of Robertson, Kaldor and Rostow. Moreover, the notion of growth via inflation was an attractive proposition to less developed...

The author summarises the history of recent macroeconomic thought from a Keynesian perspective. He argues that as the two subsequent streams of Monetarism (led by Friedman and Lucas) are slowly losing ground, there is a renewed interest in policy relevant economics with a Keynesian flavour.

In mainstream growth theory, including endogenous growth theory, the naturalrate of growth as defined by Harrod, is still treated as exogenous. In practice, however, both the growth of the labour force and the growth of labour productivity are endogenous to demand. This has theoretical...

Trade liberalisation in Mexico started in a significant way in 1985/86, and was consolidated by the NAFTA agreement 1994. Mexico was expected to benefit in terms of increased export growth, employment, real wages, and above all, a faster rate of economic growth. In practice, there has been a...

The authors reply to the comment of Boggio and Seravalli about the paper "Is the natural rate of growth exogenous?".