Categories
Economics

David Andolfatto on Money and Banking

Canadian economist and central banker 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 […]

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Business and Society Economics 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 […]

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Economics Money and Banking News

The Fragility of Bitcoin

Launched in 2009, and of wider interest since 2013, the ‘cryptocurrency’ Bitcoin has seen both a rise in its value in relation to existing national and supranational currencies, and in the discussion of its forming a partial or even complete replacement to those currencies. This article outlines the nature of Bitcoin and of traditional currencies […]

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Business and Society Economics Money and Banking

A Banking Debate

Introduction Since the financial crisis of 2007-8, one suggested target reform has been the monetary system itself.  This reform is based on the recognition that money in the modern economy is a rather peculiar phenomenon. There are two popular conceptions of the nature of money, both of them incorrect.  (Note that when we talk about […]

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Business and Society Economics Money and Banking

Smaller, Greener Banking: A Response to FOE Scotland’s Report

Response to Smaller, Greener Banking: Banking for Sustainability in a New Scotland: A Discussion Paper by Ray Perman and Friends of the Earth Scotland The authors of this report claim that ‘there has been a failure of government policy to decide the role banks should play, and therefore what sort of institutions they should be.’ […]

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Business and Society Economics Money and Banking

‘Chasing Goldman Sachs’ by Suzanne McGee – A Review

A Review of ‘Chasing Goldman Sachs: How the Masters of the Universe Melted Wall Street Down…and Why They’ll Take Us to the Brink Again’  by Suzanne McGee (2010, Crown Business) This book is an excellent complement to the academic stuff I’ve read on the causes of the financial crisis. These latter accounts are very detailed […]

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Business and Society Economics Money and Banking

Understanding Money

Understanding Money – a non-technical account of the essential role money and its creation plays in a modern economy. This article was previously available as a pdf, but I have now posted it as a blog in its own right. Since it was originally written in 2010, I have made a few revisions and additions.   […]

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Business and Society Economics Inequality Money and Banking

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 […]

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Economics Money and Banking

Northern Rock and the Bank of England

Tim Worstall v. PositiveMoney I note an interesting little discussion between Tim Worstall and Ralph Musgrave on money creation in the context of the Northern Rock bank crisis of 2007. Essentially Tim was claiming, against the PositiveMoney view, that the failure of the bank was evidence that it was not possible for banks to create […]

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Economics Money and Banking

Is Banking Government-sponsored Counterfeiting?

Banking as Fraud I’ve got involved with one or two on-line debates recently in which the issue of money in commercial banking is seen as a fraudulent process by which value is stolen from citizens. Usually the central bank is seen as the government’s enabler in this process, and so to blame for the resultant […]