Tag Archives: The Money Trap
Failure to grasp the implications of global finance
It could go either way – towards “sauve qui peut” nationalism, withdrawal from international cooperation, a turning away from globalisation; or towards a remaking of the international system and regulatory apparatus in an effort to harness the benefits of globalisation for citizens. It could depend on chance events. The downing of a…
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The importance of getting money right
The experience people have of the world, their life chances, what they learn, how they live, where they live, indeed their entire social and personal lives are shaped by monetary relationships, the monetary economy and thus to the world monetary system to an extent completely unprecedented in history. This means getting money wrong will have…
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Globalisation – a poisoned chalice
Against such a backdrop, financial globalisation appears to be a weak force. Yet it exists. It exists in many senses. Nations may raise capital controls – though surprisingly few actually have done. But there are ways round them. People’s desire to connect to the major centres of finance where the opportunities and investment chances…
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Why real investment is so sluggish
Low real interest rates would normally be expected to stimulate capital investment by lowering the cost of finance for companies – large and small. Yet real investment remains sluggish in nearly all developed economies. Some blame austerity measures taken to control fiscal deficits. Others blame the rise in precautionary savings by the private sector…
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What major monetary and banking reforms are needed?
The global financial crisis should be seen as a symptom of the lack of fit between three pieces of the jigsaw of modern finance – national or regional monies, innovative financial markets and a globalized financial system. It provided both an encouragement and a warning – an encouragement to search for alternatives…
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Geoffrey Ingham on Money
As the debate about the future of finance has yet to yield consensus on the way forward for policy, so more radical solutions are being openly discussed and advocated. This has stimulated a spreading debate on the very nature of money and banking. Geoffrey Ingham, a Life Fellow of Christ’s College, Cambridge, has brought the…
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Geoffrey Ingham and “The Money Trap”
Two key aspects or functions of money: 1. As a convenient medium of exchange – can be anything; but that’s not enough, as exchange rates between multiple media of exchange would be variable and result in anarchy 2. As a unit of account – this is primary, as Keynes taught – and explains why…
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1. The case for a global monetary standard
Introduction To be in the trap means two things: The international monetary anti-system: Governments are in the trap when they act in the belief that if they get monetary, regulatory and fiscal policy “just right” for their own economies, they can achieve their aims – full employment, growth, stability – without paying attention to the…
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Encounters with Paul Volcker and Jacques de Larosière
This month I have enjoyed wonderful conversations with three elder statesman of international finance and economic policy – Paul Volcker, Jacques de Larosière and Allan Meltzer. They all agreed on one big thing – much of what has gone wrong is down to the absence of a proper international monetary system. This is a…
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A Debate with Allan Meltzer (Part 1)
Professor Allan Meltzer debates international monetary issues and The Money Trap with Robert Pringle On 3/14/2014 12:57 PM, Robert Pringle wrote: Allan, Thinking further about the international monetary system, I now find it difficult to conceive monetary stability being established in one country alone – even if that country is the US. This…
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