Rethinking Economic Policy for Inclusive and Sustainable Growth in Emerging Economies

Abstract

Emerging economies face increasingly complex challenges in pursuing economic growth that is both inclusive and environmentally sustainable. Economic shocks, persistent inequality, fiscal constraints, climate change, technological transformation, and financial vulnerabilities require policymakers to reconsider conventional approaches to economic policy. This article aims to examine how fiscal policy, monetary policy, structural reforms, financial inclusion, and green economic strategies can be integrated to support inclusive and sustainable growth in emerging economies. A literature review method was employed to examine recent academic studies and policy reports concerning macroeconomic stability, inequality, sustainability, and structural transformation. The findings indicate that inclusive and sustainable growth requires coordinated policies that maintain price and fiscal stability while expanding access to economic opportunities, strengthening social protection, improving productivity, and supporting the transition toward environmentally sustainable production. The evidence also suggests that policy effectiveness depends on institutional capacity, policy coordination, and the ability to balance short-term stabilization with long-term development objectives.