Introduction: Economic policies for growth and development

Abstract

This introduction highlights the link between public policy and economic growth. Contrary to the widespread argument that high economic growth occurs, by default, in free economies, where markets are unfettered, the editors argue here that government policies are indeed very powerful tools that can shape the economic and social environment within which human activity is carried out. Designing good and efficient policies requires a clear understanding of the role of money, banking and public finance. The post-Keynesian theory has, thus far, provided the best explanation of how real-world economies work.