What are Economists Saying About Iceland’s Sovereign Money Proposal?
10 April, 2015A study recently commissioned by the Icelandic prime minister, Sigmundur Gunnlaugsson, and written by Frosti Sigurjonsson, displays an accurate analysis of how banks create money and endorses Sovereign Money proposals. But what are people saying about the report? Of course there are criticisms of the report and some of the usual misunderstandings, but most people think [...]
A mistaken estimate of what QE can do? (A response to John Hearn, IFS)
2 April, 2015In a recent letter to the FT, 19 prominent economists suggested that there were better ways to boost the Eurozone economy and employment than through QE. Senior lecturer at IFS college, John Hearn, responded to their letter suggesting that they are all wrong, and have “A mistaken estimate of what QE can do”. Hearn begins [...]
More investment in infrastructure without any increase in borrowing or taxes
26 March, 2015The Director General of Britain’s primary business lobby group, Confederation of Business Industry CBI, says that the next government should invest in infrastructure, but without further borrowing. “We don’t support more borrowing,” said director John Cridland, just before the launch of a business manifesto for the first 100 days of the next government. “Additional [...]
Is this the Type of Recovery we Need?
20 March, 2015In his annual budget speech yesterday, Chancellor George Osborne (the UK’s finance minister) declared that UK economy looks like to be in great shape, and that Britain is “walking tall again”. Jobs are being created, growth is on the up, living standards are improving, the national deficit (as a share of national income) has been [...]
To what extent can Positive Money and Modern Monetary Theory join forces?
19 March, 2015A recent blog by Clint Ballinger highlights some of the similarities and differences between Positive Money’s proposals and those of Modern Monetary Theory (MMT) and other Post-Keynesian types of analysis. We thought Ballinger makes some good points that are worth highlighting, before suggesting where we think his review could be improved. Ballinger starts his discussion [...]
The Grexit Proposal
17 March, 2015It is no secret that tensions are high between Greece, Germany, the Troika, and the rest of Eurozone creditors. There is a lot of posturing from both sides, and much has been said about a potential ‘Grexit’ (Greek exit). Indeed, renewed fears of a Grexit have been shaking the financial markets as chairman of [...]
Prominent Economists Who Advocate a Different Type of Quantitative Easing
15 March, 2015Both John Maynard Keynes and Milton Friedman proposed a style of Quantitative Easing (QE) that was aimed at the real economy. In effect they advocated a different form of QE than that which we are experiencing today: one that would be relayed away from the banking sector and speculators and towards consumers, non-financial businesses and [...]
What can we learn from the England’s Housing Survey?
13 March, 2015The Department for Communities and Local Government recently released its Housing Survey for England*. The report ultimately confirms what Positive Money has been putting forward for many years, that the housing bubble continues to be a massive driver of inequality and that more and more people are being ‘priced out’ of the housing market. Certain [...]
What is the Greek finance minister asking for?
17 February, 2015Recent events in Europe have stolen much of the limelight in global financial and business news. Signs of deflation, decreasing oil prices, and the announcement of European QE has many analysts scratching their heads, wondering exactly what is going to happen next. Then there is Greece, and the recent election of the ‘radical’ left-wing party [...]