Thursday, October 25, 2012

Anatole Kaletsk — Is a revolution in economic thinking under way?

The radical idea of depriving banks of their money-creating function, like the idea of helicopter money, was first proposed by conservative Chicago economists – Henry Simons and Irving Fisher – in 1936. A distinguished conservative pedigree will not make the loss of seignorage rights acceptable to bank lobbyists any more than it makes helicopter money acceptable to conventional central bankers. But if global economic stagnation continues, public patience with conventional responses will run out – and ideas that now seem revolutionary may become conventional wisdom.
Is a revolution in economic thinking under way?
Anatole Kaletsky

As deleveraging drags out and neoliberal nonsense fails to distract, the natives are getting restless.


Unknown said...

yes. get rid of these parasite banks who act as middlemen, and only create an obstacle for the productive economy. banks only look after themselves, and won't lend if the economic downturn persist; relying on them to "create credit" so they could stimulate the economy is a pipe-dream and will never ever happen. so bypassing them is the only logical thing to do.

Ralph Musgrave said...

I'm currently involved in an argument about this on Winterspeak's blog: