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The analysis of macro-micro linkages has emerged as an important
but contentious area in national policy-making. Over the last few
years, considerable progress has been made in understanding the
microeconomic foundations of macroeconomic policies, particularly
in relation to poverty reduction. There has been considerable progress
in developing evaluation tools and methodologies useful in addressing
the problem. Nevertheless, while there are some reasons for optimism
about the future, the potential contribution of these insights and
tools to poverty reduction is largely unfulfilled. It is planned
that the Development Economics Forum provides insight into the linkages
between growth and poverty and how they are influenced by fiscal
policy, monetary and financial policy, trade and exchange rate policy,
among others. The role of institutions and the political economy
of transformation are also key in the discussions.
Macro and micro-econometric modeling are used by
researchers to develop and assess the impact of polices on different
groups and on poverty reduction. There is focus on simulation at
the different levels, households, sectors, regions, to assess the
role of public sector spending in promoting economic growth and
reducing poverty. This also includes studies into various policy
options to reform government spending towards meeting the MDG goals.
The Forum seeks to establish a clear link between
micro level institutions and poverty, accompanied with in-depth
analysis of why and how these institutions affect the productivity
of economic agents, especially the poor. There will be regular assessments
of policies that affect growth, income distribution and poverty.
Finally, the Forum will develop methodologies for
investigating and understanding the social and cultural underpinnings
of household consumption behaviour and patterns in Ghana and how
different definitions are linked to analysis of economic and social
outcomes, and to policy and practice.
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