Finance, development, and structural change

the long version

This 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's 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 Anglo-Saxon 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.