ABSTRACT
Recently, development economists have paid significantly more attention to the issue of macroeconomic balance than perhaps was the case prior to the 1970s. Macroeconomic balance refers to:
1 maintaining inflation at a manageable level; 2 having the central government’s budget, if not balanced, at least not too much
in deficit; 3 maintaining a high level of employment and a relatively low rate of
unemployment and under-employment; 4 attaining a manageable current account balance within the balance of payments;
and 5 achieving a properly valued exchange rate.
