The Macroeconomics and Financial System Requirements for a Sustainable Future
Giuseppe Fontana () and
Malcolm Sawyer ()
Working papers from Financialisation, Economy, Society & Sustainable Development (FESSUD) Project
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.
Keywords: ecological macroeconomics; sustainability; financial systems; ecological footprint (search for similar items in EconPapers)
JEL-codes: E00 G20 O11 O44 (search for similar items in EconPapers)
Pages: 49 pages
New Economics Papers: this item is included in nep-mac and nep-pke
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://fessud.eu/wp-content/uploads/2013/04/The-Ma ... working-paper-53.pdf Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to fessud.eu:80 (No such host is known. )
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:fes:wpaper:wpaper53
Access Statistics for this paper
More papers in Working papers from Financialisation, Economy, Society & Sustainable Development (FESSUD) Project FESSUD Co-ordinator (Malcolm Sawyer) Leeds University Business School Maurice Keyworth Buidling Leeds LS2 9JT.
Bibliographic data for series maintained by Helen Evans ().