David Barmes
Now’s the time to stop worshipping the false god of GDP
31 March, 2020We must resist GDP-based arguments which attempt to justify a less stringent public health response to Covid-19. As we emerge from this crisis, returning to a senseless pursuit of endless growth would do more harm than good. A recent study on Covid-19’s economic impact in the UK estimates a 15% hit to GDP. Given our [...]
To help fight Covid-19 the Bank of England must commit to direct monetary financing
27 March, 2020The Bank of England is indirectly financing the Treasury’s spending on the response to Covid-19. We welcome this development, but further transparency is needed. Now is the time for the Bank to commit to direct monetary financing. On the 19th of March, the Bank announced a £200 billion expansion of its Quantitative Easing (QE) programme. [...]
More private debt isn’t the solution, this crisis calls for bold measures
18 March, 2020Coordination between the Treasury and the Bank of England is welcome, but in the midst of a crisis, more private debt is not the answer. The immediate economic response needs to involve targeted measures to protect the most vulnerable, while longer-term interventions should be focused on radically restructuring our economy. In an embattled speech where [...]
Three principles for responding to the Covid-19 economic fallout
11 March, 2020Covid-19’s economic fallout is intensifying. In response, the Bank of England and the Treasury must coordinate to implement targeted measures in line with the following three principles: (i) protecting the most vulnerable; (ii) supporting the green transition; (iii) restructuring rather than reproducing failed economic systems. As the number of Covid-19 cases continues to rise, the [...]
The UK’s decoupling delusion: Have we really divorced economic growth and carbon emissions?
17 February, 2020The claim that the UK economy has undergone an absolute decoupling of economic growth from carbon emissions is making the rounds, and is being used to justify a ‘green growth’ narrative. But absolute decoupling is only proven if we measure emissions on a territorial basis, which fails to capture the emissions of the imported goods [...]
Bank of England babies: interest rates and births in post-crisis Britain
28 January, 2020New research from the Bank of England finds that interest rate cuts in response to the 2007-08 crisis boosted the UK’s birth rate. Yet the same cannot be said of monetary policy’s impact on investment. What does this tell us about the Bank and its toolkit? Historically, the base interest rate – charged by the [...]
There will be no escape from fires and floods without a transformation of our economic system
7 January, 2020As bushfires rip through Australia and a deluge floods Indonesia’s capital city, policymakers continue to place ecocidal economic growth above all else. Addressing climate and ecological breakdown will require nothing less than a deep social and ecological transformation of our economy. Climate change is driving an increase in the frequency and severity of natural disasters [...]
Banks really are magic money trees
28 November, 2019Banks really are magic money trees. We disagree with Thomas Hale’s assessment that such a description is misleading (Are banks really magic money trees?, 20 November 2019). Rather, it’s a useful frame that offers some crucial insights into the role they play in the economy. Banks’ ability to create money via simple accounting entries has [...]
Big issues are at stake in this election but public debt isn’t one of them
19 November, 2019With the major parties outlining their spending plans, some politicians and commentators have expressed concern about the level of public debt. But - as has happened in previous campaigns - this focus risks private debt being ignored, the financial sector getting let off the hook, and the most important social and environmental challenges becoming secondary [...]