Housing finance is interesting, and offers an interesting take on some theoretical issues. Although the theoretical issues sound abstract, they are critical issues in economies facing a housing bubble. This article looks at one aspect of housing finance: the limit to financing is credit risk, not funding. Monetary flows in a credit-based economy are circular.Bond Economics
There appears to be a considerable degree of compatibility between Marx and various Kalecki- and Keynes-influenced approaches to macroeconomics. Compatibility, of course, does not imply that all these theoretical approaches stand or fall together. It simply suggests, to the extent that the compatibility exists, that it is possible to see them all as fitting within an overarching, open analytical framework. In this post, the compatibility is considered in relation to the private-sector monetary circuit of a capitalist economy.heteconomist
The compatibility flows partly from the following three similarities in analytical approach….
As Europe struggles with its currency – well, at least parts of Europe – it might be interesting to take a look back at the history of the United States of America, back when they were part of the British Empire. There is a text by Benjamin Franklin from 1729 titled “A Modest Enquiry into the Nature and Necessity of a Paper-Currency“.econoblog 101
