Sustainable Development as Equilibrium Between Investments and Savings – An Attempt Towards a New Conception

Abstract

Sustainable development economics is treated as an autonomous category, which can be ascribed to basically any process or phenomenon. However, in current research there is a lack of studies pertaining to fiscal issues of sustainable development. The main aim of this article is an attempt to determine the financial aspect of sustainable development. The main thesis of the article is an assumption that the balancing of the development is subjected to the income-expenditure identity, in particular the investment-saving identity (IS). Sustainable development has been described by a system of financial flows based on the macroeconomic model of market economy. The article is of theoretical nature and comprises the author’s analysis of financial flows, which is the result of a long-term scientific experience of the author. The issues presented in this paper are original, even controversial for some readers, and have not been discussed in domestic or international literature. JEL: GO2, QO1, O16 null The creation of the English-language version of these publications is financed in the framework of contract No. 607/P-DUN/2018 by the Ministry of Science and Higher Education committed to activities aimed at the promotion of education.

Keywords

• sustainable development
• financial flows
• macroeconomic model of market economy