Sawyer, MC and Fontana, G (2015) The Macroeconomics and Financial System Requirements for a Sustainable Future. In: Arestis, P and Sawyer, M, (eds.) Finance and the Macroeconomics of Environmental Policies. International Papers in Political Economy . Palgrave Macmillan , Basingstoke , pp. 74-110. ISBN 9781137446121
Abstract
The paper develops a macro-economic analysis along broadly defined Post Keynesian and Kaleckian lines, which incorporates ecological constraints on the pace of economic growth. Since growth is viewed as demand-driven, this involves bringing demand into line with the sustainable ‘ecological footprint’. A simple model of demand-driven growth is constructed from which some basic conclusions are drawn of the consequences of slower growth and lower investment including those for the rate of interest and the rate of profit. The macroeconomic policy to deliver full employment is indicated. The growth of the effective labour force and the sustainable rate of growth of the ‘ecological footprint’ are introduced and the relationships between them and the demand-driven rate of growth explored. The macroeconomic analysis has to be embedded with analysis of the monetary and financial system. For this purpose a circuitist analysis is presented. The paper considers the ways in which the monetary and financial systems should be re-structured to be consistent with sustainable growth and low unemployment. The major aims of this re-structuring would be to underpin financial stability, and more importantly to focus the financial sector on the allocation of funds into environmentally friendly investment
Metadata
Item Type: | Book Section |
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Authors/Creators: |
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Editors: |
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Copyright, Publisher and Additional Information: | © The Author(s) 2015. This is an author produced version of a chapter published in Philip Arestis and Malcolm Sawyer (eds.), Finance and the Macroeconomics of Environmental Policies, 2015, Palgrave Macmillan. Reproduced with permission of Palgrave Macmillan. This extract is taken from the author's original manuscript and has not been edited. The definitive, published, version of record is available here: http://www.palgraveconnect.com/pc/doifinder/10.1057/9781137446138.0008 |
Keywords: | ecological macroeconomics, sustainability, financial systems, ecological footprint |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Economics Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 03 Nov 2015 11:00 |
Last Modified: | 01 Jan 2018 01:38 |
Published Version: | https://dx.doi.org/10.1057/9781137446138 |
Status: | Published |
Publisher: | Palgrave Macmillan |
Series Name: | International Papers in Political Economy |
Identification Number: | 10.1057/9781137446138 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:91433 |