The Objectives of Economic Policy: The Economy of Belonging

This paper develops an integrated theory of the objectives of economic policy within the framework of the Economy of Belonging (EB). It argues that economic policy cannot be reduced to technical macroeconomic optimization, since macroeconomic performance and development fundamentally depend on institutional arrangements that determine equilibrium selection and define conditions of social inclusion. The article identifies five core objectives of economic policy: (1) economic growth, (2) economic and financial stability, (3) income distribution, (4) distribution of capabilities, and (5) satisfaction of belonging. These objectives are shown to be structurally interdependent dimensions of a single problem: the construction of a sustainable cooperative equilibrium grounded in institutional credibility, social cohesion, and positive expectations. The paper introduces several original contributions. First, it redefines growth as productive belonging to broad and technologically demanding markets. Second, it reconceptualizes stability as a confidence equilibrium, where crises arise from rational expectations of institutional failure rather than from behavioral irrationality. Third, it integrates income and capability distribution as structural conditions for cooperation, rather than as residual social policies. Fourth, it elevates belonging—understood as recognition, inclusion, and effective access—to the ultimate objective of economic policy. A minimal formalization is provided through a coordination model with multiple equilibria (cooperation vs. coercion), where institutional strength determines equilibrium feasibility. The framework is extended to the global level, proposing that international stability depends on institutionalized interdependence, rule-based trade, and the expansion of a global middle class. This work contributes to a post-neoclassical synthesis integrating growth theory, institutional economics, and political economy under a unified ontological and analytical framework.