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As a result of the liberalization of the 1980s, the financial system has acquired a prominent role in developing economies. It is now conventional wisdom that `financial liberalization’ is “the” means to stimulate economic development. “Investment Finance in Economic Development” challenges this assumption and offers an alternative view. The book presents a post-Keynesian approach to the role of banks, financial markets and savings in economic development. It departs from the conventional belief that financial institutions are mere intermediaries between savers and investors, to show that banks have a key, active role in the process of investment finance and growth. Further, financial markets, as the “loci” of allocation of financial savings, are shown to have an important role in supporting financial stability during the process of growth.
Author Biography
Rogkrio Studart is Associate Professor of Economics and Tutor of Undergraduate Studies at the Federal University of Rio de Janeiro.
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