An explanation of the “Efficient Market Hypothesis” – the belief that markets will always price financial assets correctly.
Tag: credit
How everything in the blog so far explains the fall in productivity in recent years.
Failing to channel saving to investment will lead to the paradox of thrift, slowing growth in productivity, while simultaneously causing asset price bubbles.
An explanation of what the saving-investment identity actually tells us about how the economy functions (everything in the blog so far has been leading up to this point).
A logical proof that the explanation in textbooks of why the saving-investment holds must be wrong, so that you can fully understand the implications of this identity, explored in the rest of this section.
Over the last few weeks I’ve outlined how our current monetary system works, what problems this causes, and briefly outlined some of the ideas currently…
We’ve seen in the last few weeks that money is created when banks make loans, so increasing the money supply in line with productivity is…
Last week I introduced you to the “Sovereign Money” movement. An international network of organisations has sprung up since the last financial crash campaigning for…
Last week I pointed out the fundamental, systemic flaw in our current monetary system: The money supply can only expand through an increase in private…
Over the last 2 weeks we’ve seen how our current money and banking system fuels cycles of boom and bust, with banks making loans (creating…