This project explores how macroeconomics of development is evolving; what the policy priorities are as the global economy undergoes transformation (with more countries moving from low- to middle- income status); the impact of global economic turbulence (including the aftermath of the 2008-09 financial crisis) and where the direction of future research and policy lies. Macro-economic management has steadily improved in most low- and middle-income countries over recent decades.
Thirty years ago, the macro-economics of development focused reducing high inflation and restoring external balance. This was often painful, resulting in prolonged periods of recession. Fiscal management was reformed and central bank independence increased. As policy credibility was restored, countries looked to macro-economic policy as a means to achieve higher, sustained, and more inclusive growth. Today, the key issues are managing private capital flows, expanding the range of financial services, reforming and managing revenue mobilization, and managing boom-bust cycles in commodity prices.