This book integrates the concept of financial intermediaries with Post-Keynesian macroeconomic modeling to discuss the relationship between financial markets and systems and macroeconomic development by discussing key macroeconomic variables such as investment, savings, and productivity growth.

The “broken window” of Bastiat (1850) can be extended to any amount of destruction and can be extensively spotted in the works of mainstream economists, particularly those of Joseph Schumpeter who derived the term “creative destruction”. While natural disasters are different from other...

This topical book addresses unemployment in Europe, the wrong-headed reliance on NAIRU to formulate policy, distributional conflicts and financial factors, as well as problems faced in developing countries with respect to exchange rate policy, central banking, challenges to growth, and...

In this paper we take into account the role of the banking system, credit and stock market in stimulating aggregate demand in post Keynesian tradition. According to the results of impulse response analysis; it appears all three financial development indicators contributed as expected in...

Around the globe observations demonstrate that the countries with expected near- future- inflation, unsustainable ballooning government spending and expected recession head towards a financial crisis unless significant policy transformations take place convincingly and before late. And whilst...

In recent studies the importance of financial markets has been highlighted and financial systems have been ascribed an increasing influence over real sector development. However, most of these discussions fail to adequately integrate this relationship into a general macro economic model. The...