Authors: Wesley C. Marshall & Louis-Philippe Rochon
Abstract
In this paper, Marshall and Rochon argue that Keynes correctly diagnosed the principles of ‘sound finance’ as limiting human progress, but did not map out a viable alternate solution of ‘full investment’, and seems to even warn against it. E.F. Schumacher critiqued Keynes’s position that until the problem of production is solved, only following ‘the money motive’ could lead humanity out of the tunnel of economic need. Now a half-century since Schumacher’s critiques, Marshall and Rochon consider that the production problem can be seen in a new light, and the debate surrounding the money motive can be reevaluated with greater context. They build upon the debate and the lessons of recent history, and within the context of other thinkers such as Veblen and Polanyi, to argue that the money motive does not need to be abandoned, but rather placed within a reformed institutional and monetary framework. They argue that full investment can only be properly addressed by shifting the overall objective of economic activity from production to human advancement. They conclude the paper by offering several considerations on why public banks are ideal institutions to shepherd a transformation of mentality into the creation of new markets and activities dedicated to human advancement.
Wesley C. Marshall &Louis-Philippe Rochon, “Understanding Full Investment and the Potential Role of Public Banks”, Review of Political Economy, Vol. 34, n°2, 2022, pp. 340-355, available at : https://www.researchgate.net/publication/358785076_Understanding_Full_Investment_and_the_Potential_Role_of_Public_Banks