ABSTRACT
We examine the contributions by the structuralist economist Marcelo Diamand, which all turn round the notion of unbalanced productive structure, and its implications on income distribution, the general price level and output dynamics in Latin American countries, with special focus on Argentina. We argue that Diamand’s work provides a very useful framework to understand why an institutionally historically determined real wage may cause devaluations to be both inflationary and contractionary, as it has been the case in many Latin American countries that attempted to initiate an industrialization process by import substitution.
