The unbalanced economy

I’m pretty certain that Capx website is not for the most radical of writers. And certainly the author I stumbled upon used to write for the ‘Telegraph’. But under the heading: ‘There’s a new sub prime crisis’ and ‘the payday lending market has exploded since 2008’ the article considers Provident’s problems. This is a company… Read more

Money’s golden connections

A recent email from Positive Money posed an interesting question: “How is it that lack of money, the only resource that can be created at will, forms the main obstacle for addressing effectively society’s problems?” If we presume that the resources they refer to are labour, land, energy and money, then it is delightfully true… Read more

The quantity of money

After considering what is money and how it is created, the next step is to look at how much there is, how the quantity changes over time, and what this is telling us. We are in luck because we can look at real data.* Below I plot the amount of money in circulation in the UK… Read more

Sovereignty is a matter of degree

This is a copy of a letter recently sent to a newspaper though I regret have lost the reference as to which. Its destination is not important but its sentiment is. We have someone here from a very small (rather attractive, if I recall correctly) town of about 5,000 in Bedfordshire, who considers sovereignty beyond… Read more

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Why can’t a household be more like a bank?

The short answer to this question is of course that householders don’t issue their own money. But banks do. So perhaps we should be complaining less about the household analogy that is the bugbear of a proper understanding of how the economy works  – and suggesting another more fitting analogy. A government with a sovereign… Read more

BoM August 2017

Our Book of the Month for August is a classic and strongly recommended by the Equality Trust. The Spirit Level: Why More Equal Societies Almost Always Do Better was published in 2009. Written by Kate Pickett and Richard Wilkinson, the book highlights the “pernicious effects that inequality has on societies: eroding trust, increasing anxiety and illness, (and)… Read more