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Our response to critics in the Cambridge Journal of Economics

Cambridge Journal Response

The Cambridge Journal of Economics (probably the leading journal of Post-Keynesian economics) has published an entire special issue on "Cranks and brave heretics: Rethinking money and banking after the Great Financial Crisis", inviting a range of academics to comment on proposals to stop banks creating money (amongst other ideas for monetary reform).

joebhedSorry, gang, stopping banks from creating money would indeed cause the economy to crash - if we leave it to these P-Ks to implement. But, rather, a monetary policy administered by a pubic authority empowered to create and issue the money would raise instead that valid, age-old stickler among public ...

last month

Vince Richardson""We argue that the reality of bank lending and firm investment is a challenge to this assumption and ignores the fact that the central bank can always create money to finance lending to the real economy"Not sure about this,surely we are about the state spending into the real economy?This lending bu...

last month

ckmurrayHave you read about Australia's experience with the Commonwealth Bank which was a government owned central bank + retail bank in the early 1900s? https://en.wikipedia.org/wiki/...Seems very relevant to the issue of private vs public created money....

last month
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Bank of England releases key paper on digital cash and blockchain

Screenshot 2016-07-19 13.36.01

The Bank of England has just released its most significant paper yet. Macroeconomics of central bank issued digital currencies, by John Barrdear and Michael Kumhof, discusses the consequences of the central bank making a digital form of cash available to the general public, so that they are no longer forced to use bank deposits to make electronic payments:

Dwain DibleyDeny much?...

4 weeks ago

Gregory SchoenmakersProject much?...

4 weeks ago

Dwain DibleyThat's funny Gregory, you allowing your cognitive dissonance to get the better of you. Well, don't let facts bother you, you are perfectly free to continue to believe as you'e been told to believe....

4 weeks ago
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Marco SabaFirst let we define the unresolved liability of 'currency in circulation' in the Bank of England balance sheet: http://leconomistamascherato.b......

last month

James MurrayGeorge,Perhaps it would help us to digest your assertions if you could provide some links to support them.Do you really believe that "Publicly made goods are always cheaper than private goods" ...?I do admire your faith, and will use it to explain why every Socialist State over the last century was ...

last month

James MurrayDavid,I agree that we are now very much relying on service industries but as a nation that is the 5th or 6th largest in the world, we must be doing something right.And the Tory Government, again, must be doing something right as the electorate seem to trust them, to your horror it appears.And if it ...

last month
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Robert Bostickhttp://goo.gl/a5zMg6 Britain has a non-convertible, fiat currency with a flexible exchange rate and none of its "debt" in a foreign currency. As such nothing constrains central government spending except the spectre of inflation, highly unlikely.Tax policy, therefore, serves to manage inflation, inc...

2 weeks ago

bankster01Suggested again in email to Carney and Hammond that Sovereign money could be used to improve infrastructure. Main benefits are taxes can be lower, less need for public and private borrowing, less need for austerity, and it helps to pay down existing debts. Deflationary pressures are very strong at t...

last month

James MurraySteve,I am afraid that your hypothetical cannot not cut any mustard, despite the consequences.PM exists, amongst other things, to push towards a reform of the banking system and to add a specific tool, Public Money Creation - PMC - to the Treasury/Bank of England toolkit to deal with the monetary sy...

last month
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