Economic Reform Australia Blog

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!

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, but throughout … [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...]