How Land Disappeared from Economic Theory - Editor Anyone who has studied economics will be familiar with the ‘factors of production’. The best known ‘are ‘capital’ (tools, machinery, computers) and ‘labour’ (physical effort, knowledge, skills). The standard neo-classical production function is a … [Read more...]
Paying for public services, in a monetary sovereign state
If our national Government was to spend more than the currently budgeted amount on your health care system next year, it would be good to know how they would finance that spending. It is a question that advocates of more health spending are always likely to be asked. More generally, exactly how is … [Read more...]
Try fiscal policy, stupid!
Steven Hail The Bank of England is actually finding it difficult to persuade investors to sell it sufficient government bonds to facilitate its planned bank reserve for government bond swap (sometimes called 'quantitative easing'). There is a problem with a lack of spending - not just in the UK, … [Read more...]
What causes changes and fluctuations in the volume of money?
A New Zealand colleague recently drew my attention to the NZ Royal Commission into Monetary, Banking and Credit Systems (1956) [1], and in particular to clause 157: " 157. The volume of money (on the Reserve Bank definition) is increased: (a) When a customer of the Reserve Bank or a trading … [Read more...]
