ABSTRACT
The previous section established an inverse relationship between a country’s economic trajectory and both the potential pre-shock resilience of the country and the nature of its external shocks. It thereby underlined the significance of the policy variable to which attention now turns in this section (Part II) with specific reference to macroeconomic policy. The discussion examines the macroeconomic policies of the four developing American countries, focusing on the debate between structuralism and orthodox theory. The variations within each policy viewpoint, notably that between doctrinaire orthodoxy and pragmatic orthodoxy, are also analysed. It will be recalled that the doctrinaire orthodox view advocates minimal state intervention and relies heavily on the exchange rate to restore equilibrium following disruptive shifts in mineral revenues. In this context, pragmatic orthodoxy and structuralism offer alternatives to doctrinaire orthodoxy which represent increasing levels of interventionism.
