IIPP will explore how the state can influence the financial sector and steer public investment to support sustainable economic growth and create public value.
About
The financial crisis of 2008 raised fundamental questions about fiscal-, monetary- and financial policy. It became clear that the banking system in advanced economies is no longer primarily supporting the real economy but rather turning towards speculative investment. IIPP’s research in this area focusses how key public sector agencies - central banks, ministries of finance, financial regulators and supervisors – can influence financial flows and steer public investment to support sustainable economic growth and industrial policy objectives whilst maintaining financial stability. The years following the crisis also demonstrated a need to rethink fiscal policy as austerity led to stagnation and rising debts relative to incomes. Here our research focusses on the way in which different types of public investment and spending can support innovation and structural change to meet the grand challenges facing modern economies.
Policy implications
Our research in this field pushes back against the conventional macroeconomic view that in the long run finance and money are ‘neutral’ and that government spending crowds out private investment. Rather, we argue, finance plays a key role in determining the trajectory of the macroeconomy because of bank’s ability to create new money and purchasing power via their lending activity. This creates the opportunity for new innovations and shifts in the direction of growth – however, without public intervention, the private financial sector can become overly short-termist and fail to support public purpose. Goverment investment can also influence the direction of growth by reducing uncertainty and raising expectations and opportunities in particular sectors of the economy.
Projects
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Publications
- Working papers
- Determinants of income shares and the stable middle in post-socialist China, Giorgos Gouzoulis, Collin Constantine
- When homes earn more than jobs: the rentierization of the Australian housing market, Josh Ryan-Collins, Cameron Murray
- Theorising and mapping modern economic rents, Mariana Mazzucato, Josh Ryan-Collins,ÌýGiorgos Gouzoulis
- Managing nature-related financial risks:ÌýA precautionary policy approach for central banks and financial supervisors, Katie Kedward, Josh Ryan-Collins, Hugues Chenet
- Social structures of accumulation in Greece 1980-2014, Angeliki Papadopoulou, Giorgos Gouzoulis
- Neither crowding in nor out:ÌýPublic direct investment mobilising private investment into renewable electricity projects, Matteo Deleidi, Mariana Mazzucato andÌýGregor Semieniuk
- Public investment fiscal multipliers: An empirical assessment for European countries,ÌýMatteo Deleidi,Francesca Iafrate, Enrico Sergio LevreroÌý
- Supermultiplier, innovation and the ecosystem: A stock-flow dynamic model, Matteo Deleidi, Riccardo Pariboni, Marco Veronese Passarella
- Credit where it’s due: A historical, theoretical and empirical review, Dirk Bezemer, Josh Ryan-Collins, Frank van Lerven, Lu Zhang
- Bringing the helicopter to ground: A historical review of fiscal-monetary coordination to support economic growth in the 20th century, Josh Ryan-Collins, Frank van Lerven
- Putting austerity to bed: technical progress, aggregate demand and the supermultiplier, Matteo Deleidi, Mariana Mazzucato
- , Matteo Deleidi and Mariana MazzucatoÌý
- Policy
- The macroeconomic impact of government innovation policies, Paolo Agnolucci, Matteo Deleidi, Vincenzo de Lipsis, Mariana Mazzucato, Josh Ryan-Collins
- The effectiveness and impact of post-2008 UK monetary policy, Matteo Deleidi, Mariana Mazzucato
- , Josh Ryan-Collins
- Blog
- , Josh Ryan-Collins
- ,ÌýMatteo Deleidi,ÌýVincenzo de Lipsis,ÌýMariana Mazzucato,ÌýJosh Ryan-CollinsÌýand Paolo Agnolucci
- , Josh Ryan-Collins
- , Josh Ryan-Collins
- , Brendan Maton
- , Josh Ryan-Collins
- , Mariana Mazzucato
- , Josh Ryan-Collins
- , Josh Ryan-Collins
- Articles
- ,ÌýMatteo Deleidi,ÌýEmilio Carnevali, Riccardo PariboniÌýand Marco Veronese Passarella
- ,ÌýMatteo Deleidi,ÌýMariana Mazzucato, and Gregor Semieniuk
- ,ÌýMatteo DeleidiÌýand Giuseppe Fontana
- , Matteo Deleidi, Francesca Iafrate & Enrico Sergio Levrero
- , Matteo Deleidi, Mariana Mazzucato
- ,ÌýEmanuele Campiglio,ÌýYannis Dafermos,ÌýPierre Monnin,ÌýJosh Ryan-Collins,ÌýGuido SchottenÌý&ÌýMisa TanakaÌý
- , Matteo Deleidi
- , Matteo DeleidiÌý
- , Matteo Deleidi and Enrico Sergio Levrero
News and events
- , Josh Ryan-Collins, W8 academic lecture
, Josh Ryan-Collins (chair), Asker Voldsgaard (organiser), Andrew Berkeley (speaker), seminar
Funders and partners
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