1st Edition

Investment Finance in Economic Development

By Rogerio Studart Copyright 1995

    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.

    Preface 1 Introduction 2 Finance and economic development: The dominance of the prior-saving argument 3 Departing from the prior-saving argument: Finance in a monetary production economy 4 Saving and financial markets in economic growth 5 Financial structures, financial development and economic development 6 From theory to evidence 7 Financial system and industrialisation in Brazil, 1947-66 8 The financial reforms and the ‘economic miracle’ 9 Towards the lost decade: The financial system in the imbalanced growth (1973-83) 10 Conclusion


    Rogkrio Studart is Associate Professor of Economics and Tutor of Undergraduate Studies at the Federal University of Rio de Janeiro.