Two books on the theories and legacy of Ragnar Nurkse (1907–1959), the most internationally influential economist from Estonia, were presented today in the Independence Hall of Eesti Pank. The books discuss his role in shaping the post-war economy, and his views on capital formation in less advanced nations.

The first book, Ragnar Nurkse and the Making of the Bretton Woods Paradigm, discusses his intellectual legacy and his role in shaping the post-war global economy. The authors Ivo Maes and Ilaria Pasotti Nurkse go deep into the archives to see how Nurkse evolved as an economist, and they show how his analysis of the financial and economic shock between the wars helped shape his thinking, which was then the basis for the Bretton Woods system of international finance that was set up in 1944. The book presents Nurkse’s ideas in the broader context of 20th century economic history and also looks at what can be learned today from how he approached international cooperation, economic stability and the fragility of the global economic climate.

The second book, Kapitali moodustumise probleeme vähearenenud riikides (Problems of capital formation in underdeveloped countries), repackages for the reader six lectures that Ragnar Nurkse delivered in 1951 at the Brazilian Institute of Economics in Rio de Janeiro. The central question in them is how to increase the saving and investment that are needed for capital formation, as this is an essential requirement for economic growth. Nurkse argues that effective fiscal and monetary policy are the primary foundation for an increase in the saving that is needed for capital formation. The task of the state is to encourage saving, as Nurkse considered that investment could be left to the private sector and that banking is the link that connects the state with companies that invest. The lectures were translated into Estonian by Kalev Kukk and Kalle Kukk.

The books were presented at Eesti Pank by Professor Ivo Maes and Kalev Kukk, and the presentation was followed by a discussion. The event was be chaired and moderated by Chair of the Eesti Pank Supervisory Board and Professor of economics at the University of Tartu Urmas Varblane.

Photos of the event on Flickr

Additional information:
Hanna Jürgenson
Communications Specialist
Eesti Pank
+37256 920 930
[email protected]