Worker Savings, Foreign Investment and Capital Market Development: An Assessment of the Polish Government’s Action Plan from a Post-Keynesian Perspective
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Publish date: 2017-10-31
Gospodarka Narodowa 2017;291(5):5–30
In February 2016, the Polish government adopted an Action Plan for Responsible Development and in July it came up with a draft Strategy for Responsible Development that was finally approved in February 2017. It seems that the drafters of the Action Plan and the Strategy drew heavily from the heterodox economy, including post-Keynesian theory and related concepts. In part, this was because they were mindful of the latest crisis and its implications for mainstream economics. However, there is an important divergence between the Polish government’s Capital Accumulation Program, which is part of the Action Plan/Strategy, and the role of savings as explained by post-Keynesians. The purpose of this paper is to use post-Keynesian/Kaleckian theory to prove that increasing workers’ savings through the development of the capital market, an approach that the government plans to support, is inconsistent with the rest of the Action Plan and contrary to the post-Keynesian policy of growth.