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

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