Economic Reform Australia Blog

Two different models for monetary reform

By 'monetary reform' I mean implementing a new monetary system in which no commercial financial institutions are able to practice fractional reserve deposit expansion. There is nothing new about this idea; it was around in the early part of the 20th century - notably in the economic reform proposals … [Read more...]

A pivotal formula in macroeconomics

An article by Cullen Roche <http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1905625> recently posted on ERAInf contains some informative data on sectoral balances. These sectoral balances can be¬†established according to GDP: GDP = C + I + G + (X - M) C = consumption I = investment G = … [Read more...]

The problem is the moribund state of mainstream economics

Steve Keen has made the point that monetary reformers are going to have an uphill battle in bringing in any real or meaningful reforms because the monetary system, as it currently operates, is so poorly understood -- even by many of those who consider themselves to be financial professionals and … [Read more...]