As a result of the liberalization of the 1980s the financial system hasacquired a prominent role in developing economies. It is now conventionalwisdom that fina... » 

As a result of the liberalization of the 1980s the financial system hasacquired a prominent role in developing economies. It is now conventionalwisdom that financial liberalization is the means to stimulate economicdevelopment. Investment Finance in Economic Development challenges thisassumption and offers an alternative view. The book presents a postKeynesianapproach to the role of banks financial markets and savings in economicdevelopment. It departs from the conventional belief that financialinstitutions are mere intermediaries between savers and investors to show thatbanks have a key active role in the process of investment finance and growth.Further financial markets as the loci of allocation of financial savings areshown to have an important role in supporting financial stability during theprocess of growth. «