There is no particular reason to link economic growth with democracy. Yet the search for economic growth belongs to the age of democracy. In the twenty-first century, a policy goal is to “maximize” economic growth.
But what is economic growth? For central bankers today, economic growth can be attained by monetizing fiscal deficits, but there has also been and continues to be an intellectual battlefield on this topic. In this chapter, we briefly walk through the recent history of the idea of economic growth. At the end, we discuss the implications for investing.
KeywordsEconomic growth Physiocrats Tableau Economique Full employment Taylor’s rule Technological progress Deficit financing Technological change Collateral Labour Capital Social cooperation Social coordination Specialization Equilibrium Income distribution
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