Tuesday, 14 October 2014

Martin Wolf puts in a good word for Positive Money.

See Martin Wolf's 6 minute interview here.

Here’s a summary of his main points. (The initial advert is not in English but the Wolf interview is in English).

1. We haven’t worked out how to boost aggregate demand since the crisis particularly in the Eurozone.

(My comment: going a bit far that, isn't it? The EZ is a special case: it’s problems are largely down to the inherent problems of common currency. As for the rest of the world, MMT (which is Keynes writ large) tells us how to boost demand.)

2. The banking system has been reformed a bit, but not enough.

3. Bank reform rules are “incredibly” complicated.

4. In contrast to the above complexity, there are two very simple ways of sorting out the banking system. One is FAR HIGHER capital requirements – about FIVE TIMES higher than the capital requirement contemplated by Basel III. And the second is the full reserve system advocated by Positive Money and the Chicago economists like Irving Fisher in the 1930s.

No comments:

Post a Comment

Post a comment.