The argument should be about the best way the state can help drive growth, writes in her article Mariana Mazzucato. more
There is serious concern about Italy’s banks and whether the bad debt they are carrying signals trouble for the Eurozone. In facing up to its troubled financial system Italy’s political leaders could also benefit from a moment of reflection on what the role of finance could, and should, be in a dynamic and functioning economic system. As finance is central to the capitalist system, the lessons for Italy’s financial system are broader than the role of its banks. I will concentrate on 5 key points.
First, money is not just a medium of exchange, replacing barter and then gold. Money lies at the centre of the economic system which is, as understood especially by the great economist Hyman Minsky more
“I travagli che da diversi anni scuotono il sistema finanziario italiano offrono spunti di riflessione sul ruolo che la finanza potrebbe e dovrebbe avere in un ecosistema economico dinamico ed efficiente” PDF English version more
The debate about the relative roles of the state and the market in capitalist economies tends to swing from side to side in the hearts and minds of public opinion: periods when the state is defended for its role in economic development are always superseded by an attack on its intervention into ‘well functioning’ markets. It has been like this throughout the twentieth century. And it is what has happened since the most recent global financial crisis and economic recession: a brief period right after its outbreak, when there was consensus that the state had a key role to play in both saving the banks and using fiscal policy to promote growth, was quickly apprehended more
“Le fasi dello Stato nello sviluppo economico sono sempre seguite da un attacco contro il suo intervento nel buon funzionamento dei mercati.” more
Mazzucato on how public and private sectors must forge a Green New Deal more
All eyes are on the negotiations at COP21, the United Nations Conference on Climate Change, in Paris. President Obama’s opening remarks and the recent announcement by Bill Gates and other private investors of a new fund for new green technology could be seen as encouraging signs. But do policy-makers now have the courage to realise that to truly transform economies in a green direction the state must actively tilt the playing field?
We cannot rely on the private sector to bring about the kind of radical reshaping of the economy that is required. As Bill Gates recently acknowledged, only the state can provide the kind of patient finance required to make a decisive shift. In this, the hoped for green revolution must learn the lessons of the IT revolution: it will require not only massive more
Mazzucato’s joint policy paper with Jim Watson and Gregor Semieniuk outlines the policy imperatives needed to produce a ‘green revolution’. PDF more
Prof. Mazzucato writes for the Guardian following the 2015 Spending Review. more