Open AccessThe Access to Demand
Author(s) -
Luiz Carlos Bresser-Pereira
Publication year - 2015
Publication title -
brazilian keynesian review
Language(s) - English
Resource type - Journals
ISSN - 2446-8509
DOI - 10.33834/bkr.v1i1.14
Subject(s) - aggregate demand , investment (military) , economics , developing country , exchange rate , face (sociological concept) , demand management , effective demand , monetary economics , macroeconomics , economic growth , monetary policy , social science , sociology , politics , political science , law
In this paper I argue that, in developing countries, sufficient aggregate demand is not enough to motivate investment and achieve full employment. Besides, according to the Keynesian developmental macroeconomics under construction, competent business enterprises must have access to that demand – access which is denied to most of them because developing countries face the tendency to the cyclical and chronic overvaluation of the exchange rate.