Investment Finance in Economic Development

<p>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 <em>the</em> means to stimulate economic development.<br><em>Investment Finance in Economic Development</em> 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 <em>loci</em> of allocation of financial savings are shown to have an important role in supporting financial stability during the process of growth.</p>