Finance, Development and Structural Change

This important book applies a post-Keynesian perspective to the financial problems of economic development, restructuring in Eastern Europe, and the creation of a single market in the European Union. Distinguished authors have prepared important new papers which take existing institutions into account, reaffirm the causal priority of investment over saving and the distinction between finance and funding, focus on the macroeconomic repercussions of the finance of growth and structural change, and reassert Keynes’ concern for symmetry in balance of payments adjustment.

The essays on development provide a full critique of financial liberalization and explore alternatives, concentrating on the underdevelopment of funding opportunities rather than the lack of finance. The suitability of the AngloSaxon model of finance and funding for Eastern Europe is also questioned. The final section discusses structural imbalances in Western Europe and the strain they put on the creation of the Single Market.

Written by leading specialists in their respective fields of research, these innovative new papers illustrate the vitality of the post-Keynesian tradition and will be required reading for all economists wishing to understand the role of finance in shaping development and change.