Macroecomic policies have devastating effects on the environment. They shape the ecomic processes that drive deforestation, soil erosion, the exhaustion of living marine resources, greenhouse gas emissions, and the massive loss of biodiversity. Despite this, the vital connection between macroecomic policies and the environment has thus far received little attention by the academic and the policy-making communities. Rethinking Macroecomics for Sustainability reveals the linkages between monetary, financial and fiscal policies, and the environmental degradation that threatens the planet's biosphere. In doing so, it examines the complex lines of transmission from policy priorities all the way down to the effects at the local level, as well as analyzing the deep-seated relationship between macroecomic policy models and their impacts on growth, peoples' livelihoods and the environment. Besides exploring the relation between macroecomic and climate change policies, as well as efforts to 'green' the world ecomy, the book considers five key case studies in Latin American ecomies. Going beyond this, it also sets out specific policy recommendations, both at the national and international levels. All this is based on the incontrovertible premise that macroecomic policies must to be redesigned in order to attain long-term sustainability objectives, and that monetary and fiscal policies are as important for environmental stewardship as they are for growth and prosperity.
Alejandro Nadal is Professor at the Centre for Economic Studies of El Colegio de Mexico. He is co-chair of the Theme on the Environment, Macroeconomics, Trade and Investment (TEMTI) of the International Union for the Conservation of nature, IUCN.