Financial markets are currently in a frenzy – and a global market crash could be just minutes away. Earlier last week, China allowed its currency to fall in value, prompting its highest one-day decline in over two decades. Today, data shows that China’s factories have contracted at their fastest pace since the most recent financial crisis. Market panic is quickly gaining pace as China’s economy shows clear signs of further deterioration.
How to bypass the financial markets and ensure money is spent on building homes, roads and energy infrastructure (nef)
It is clear that the current approach to monetary policy – which essentially hasn’t changed for three years – is failing to achieve the economic pick-up that the government and policy makers assumed it would have by now. So experimenting with how QE is used in the future, and thinking strategically, would not be as disastrous a policy as some would have you believe, argues Josh Ryan-Collins, Associate Director of the Economy and Finance team at New Economics Foundation in the article entitled 'Strategic Quantitative Easing – public money for public benefit', 12th August 2015
The recent dramatic events surrounding the Greek debt crisis had many of us on the edge of our seats as we witnessed history unfolding before our eyes. From the calling of the referendum, to the landslide No vote, to Tsipras’ subsequent capitulation under pressure from the Troika-- for many of us it was as gripping as it was occasionally demoralising (like watching the finals except the outcome actually matters). What I’m sure is lost on most, obscure as the mechanics of the monetary system are, is the crucial role of fractional reserve banking both in precipitating the crisis and in using it to strip the Greek people of their democratic sovereignty.
Listen to the 2nd part of the new show on Bradford Community Broadcasting 106.6FM radio "Why don’t economists…” , presented by Marie McCahery. This special edition is on the economic policies of Jeremy Corbyn and aims to explain what QE for infrastructure means.