Rethinking macroeconomic policies for full employment and inclusive growth: Some elements

EMPLOYMENT Working Paper No. 238

This paper reviews recent evidence and research by ILO and others concerning monetary, fiscal, exchange rate and capital account management policies, looking also at issues of policy coordination and the role of social dialogue. It argues that the rethinking of macroeconomics that is underway is providing ammunition for more active policies to strengthen labour market resilience in economic downturns; to support productive investment and private sector development, especially small and medium-sized enterprises;
and to promote employment, productivity and stable and inclusive growth. The paper sets forth key elements of pro-employment macroeconomic frameworks as they were outlined by the ILO tripartite constituents at the 2014 International Labour Conference. Finally, it suggests areas for debates and research to inform the work of the ILO and other international organizations in the future.