Abstract
This paper aims to evaluate the macroeconomic performance of some chosen countries in the period 1997-2012 using the four variables that compose the ?magic square? diagram suggested by Nicholas Kaldor (1971). In order to avoid problems with the variables? scale, the standardized ?Index of Economic Welfare? created by Ren? A. Medrano-B and Joan?lio R. Teixeira (2013) was utilized. The results showed a good performance of China and the Asian countries. Furthermore, in spite of the impact of the crises of 1998 and 2008 into Russia, this country presented a good recuperation and achieved a high index just after these crises. The Brazilian performance was somewhat surprising. The country showed a low growth rate and a progressive current account deficit, both typical of developed nations, along with a high inflation, typical of developing countries. A positive aspect seems to be the country?s capability of avoiding external crises, like the verified in 2008-2009.
Highlights
The magic square of this country indicates that it usually has low growth and a deficit balance in current accounts, typical characteristics of developed countries, though it remains with problems common to emerging countries, such as an elevated inflation
Once there were some important crises between 1997 and 2012, the database was initially divided in 3 distinct periods: 1997-2002, 20032007 and 2008-2012
The first period was marked by the Asian (1997) and Russian (1998) crises and their effects on the following years
Summary
Summary: This paper aims to evaluate the macroeconomic performance of some chosen countries in the period 1997-2012 using the four variables that compose the “magic square” diagram suggested by Nicholas Kaldor (1971). The goal of this paper is the calculation and analysis of a standardized index that allows us to compare the macroeconomic performance of countries
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