English Title: Is Economic Growth inherent to the System?
Translation of abstract (English)
Focusing on market economies this paper asks whether economic growth is inherent to such economic systems. We argue that the historical experience of exponential growth does not provide clear evidence in favor of an affirmative reply. A purely monetary approach is not found to be suitable to address this question. The neoclassical growth model of capital accumulation supports the view that market economies may exist without growth. Allowing for technical change, economic growth may or may not be part of a market economy depending on the so-called fundamental causes of growth such as the legal system, geography, natural resources, culture, and on the growth policy that governments implement. It is most likely to occur if policy fosters innovation investments and investments in human capital. Yet, economic growth is unlikely to be inherent to a market economy per se.
|Item Type:||Working paper|
|Faculties / Institutes:||The Faculty of Economics and Social Studies > Alfred-Weber-Institut for Economics|
|Uncontrolled Keywords:||Economic Growth , Neoclassical Growth Model , Economic Systems|
|Schriftenreihe ID:||Discussion Paper Series / University of Heidelberg, Department of Economics|