Economic policy and the dynamics of growth


  • Sebastián Edwards


In this paper I deal with some of the most important policy issues related to economic growth theory, and I argue that the recent literature in the field have been almost silent with respect to some of the most important concerns among policy makers. I also argue that measurement problems plague the empirical applications of the new theories, reducing greatly their degree of persuasiveness, in particular when it comes to measuring trade policy. I end my discussion by briefly tackling the relationship between politics, savings and growth.