David Andolfatto on Money and Banking

David Andolfatto recently constructed a model intended to ‘reconcile’ (or I think more accurately to distinguish between) ‘mainstream’ and ‘heterodox’ views of the macroeconomic importance of money and banking. More specifically, he wants to answer the question: does the ability of banks to ‘create money’ when they issue loans give bank lending a greater impact … Continue reading David Andolfatto on Money and Banking

The Production of Money: How to Break the Power of Bankers – by Ann Pettifor

Ann Pettifor is a director of Prime Economics, which advocates for a more Keynesian view of macroeconomics, and has been involved in development and environmental economics for many years. In The Production of Money: How to Break the Power of the Bankers (Verso, 2017) she correctly identifies that ‘money enables us to do what we can … Continue reading The Production of Money: How to Break the Power of Bankers – by Ann Pettifor

Money and the Neo-classics… Again

‘Aggregate Demand, Idle Time, and Unemployment’ – A Critique of Michaillat and Saez Introduction Like all neoclassical models, that of Michaillat and Saez (2014) referred to in Simon Wren-Lewis’s Mainly Macro blog on 16th August fails to model money realistically. This renders their model incoherent and in any case incapable of encompassing one of the … Continue reading Money and the Neo-classics… Again

Unemployment – Morality, Money and Increasing Returns

The causes of unemployment make it a moral issue. Radical solutions are required. In an earlier post I noted some features of unemployment from a UK perspective. The main thrust was that a fairly constant proportion of the population in employment (around 72% of those of working-age) hides a serious decline in the availability of … Continue reading Unemployment – Morality, Money and Increasing Returns

Money and Sport Don’t Mix

Does professional sport as we know it have much longer to go? Clubs are bankrupt, the play is ignored in favour of endless analysis and criticism over refereeing or umpiring decisions, and the players are subject to pressure and scrutiny that while commensurate with their earnings is obviously not compatible with family life. Even the … Continue reading Money and Sport Don’t Mix

John Gray on ‘Progressivism’ and Why Labour Lost

I admire John Gray and his somewhat cynical writing on political philosophy. Having heard him speak and briefly spoken to him he is evidently a man of erudition and humanity. But when he writes on ‘Progressivism’ and Labour’s election defeat in his January New Statesman essay ‘Why the left keeps losing’ something seems to have … Continue reading John Gray on ‘Progressivism’ and Why Labour Lost