Fiscal and Monetary Policies and Problems in Developing Countries [Paperback]

This book examines the fiscal and monetary policies used to overcome three major obstacles to development commonly faced in developing countries: inadequate investment; misallocation of investment resources; and internal and external imbalances. It looks at the role of fiscal measures and foreign capital in promoting domestic investment, and the use of fiscal and monetary instruments to influence the pattern of investment.This book examines the fiscal and monetary policies used to overcome three major obstacles to development commonly faced in developing countries: inadequate investment; misallocation of investment resources; and internal and external imbalances. It looks at the role of fiscal measures and foreign capital in promoting domestic investment, and the use of fiscal and monetary instruments to influence the pattern of investment.This book is concerned with the use of fiscal and monetary policies to overcome three major obstacles to development commonly faced by less developed countries: inadequate investment; misallocation of investment resources; and internal and external imbalances i.e. inflation and balance of payments deficits. The book is divided into six chapters the first two of which are devoted to the definition of concepts and to an explanation of the Keynesian model of income determination and of Kalecki's model of financing investment, within the framework of which the role of fiscal and monetary measures and of foreign capital is later examined. Chapters 3 and 4 discuss the role of fiscal measures and of foreign capital, respectively, in promoting domestic investment. Chapter 5 examines the use of both fiscal and monetary instruments, including industrial and agricultural development banks, to influence the pattern of investment. The last chapter is devoted to the problems of internal and external imbalances. The author examines policies pursued by a representative sample of developing countries and concludes that most of them fail adequatelyls.