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Macroeconomic Policies for a Sustainable World.
- Source :
-
Journal of Human Development & Capabilities . Nov2023, Vol. 24 Issue 4, p494-516. 23p. - Publication Year :
- 2023
-
Abstract
- The urgency of the climate crisis is such that it needs to inform most policy-making. It represents a major threat to human development. Yet while the existence of the crisis is generally acknowledged, this has not affected macro-economic policy even though the climate crisis has major effects on the accepted objectives of macro-economic policy, including growth and economic stability. The paper explores changes in macro-economic policy needed for sustainability which should become an intrinsic and overriding objective of policy. Implications of doing so are explored, including replacing the growth objective with green/sustainable growth, altering the measurement of GDP accordingly; greatly increasing the weight given to the well-being of future generations with implications for interest and investment rates; and reforming taxes and expenditures. Ballooning of debt is justified to support a rapid transition to a carbon-free economy. Among high-income countries, the growth objective should be questioned. Low income countries need green growth to attain reasonable living standards. Large-scale resource transfers to low income countries are essential to support green expenditures for mitigation and especially adaptation. High priorities are a change in the approach of the IMF and World Bank, and innovative financial mechanisms to support the required transfers. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 19452829
- Volume :
- 24
- Issue :
- 4
- Database :
- Academic Search Index
- Journal :
- Journal of Human Development & Capabilities
- Publication Type :
- Academic Journal
- Accession number :
- 173437777
- Full Text :
- https://doi.org/10.1080/19452829.2023.2243919