Disagree with Aaron's take on the level of deficit that can be ran. He is right about a link in credit creation to productive output however.. There are three areas of the economy that investment can be directed from credit creation.. 1. Produtive and inflationary e.g. consumer credit for car loans etc. 2. Productive and non inflationary e.g. smes and infrastructure 3. Non productive and inflationary e.g. finance and assets So, according to the quantity theory of credit (Richard Werner, coined term QE for observation of Japanese economy in 80s/90s.. As long as credit is created for investment in no. 2 above then we will improve productivity and keep inflation low. If we create the majority of credit for no. 3 above then that's why we have low productivity in the UK and yet high deficit. Note: no link between interest rates and inflation. Interest rates lag inflation in all empherical data for majority economies. Credit creation and it's productive allocation or not, will influence inflation. Interest rates are a reaction
Disagree with Aaron's take on the level of deficit that can be ran. He is right about a link in credit creation to productive output however..
There are three areas of the economy that investment can be directed from credit creation..
1. Produtive and inflationary e.g. consumer credit for car loans etc.
2. Productive and non inflationary e.g. smes and infrastructure
3. Non productive and inflationary e.g. finance and assets
So, according to the quantity theory of credit (Richard Werner, coined term QE for observation of Japanese economy in 80s/90s..
As long as credit is created for investment in no. 2 above then we will improve productivity and keep inflation low.
If we create the majority of credit for no. 3 above then that's why we have low productivity in the UK and yet high deficit.
Note: no link between interest rates and inflation. Interest rates lag inflation in all empherical data for majority economies. Credit creation and it's productive allocation or not, will influence inflation. Interest rates are a reaction
It is important that people are reminded that Perform UKnt are not fans of higher wages , not for ordinary people
What even is this? 00:00 and nothings changed..?
that was incredibly tedious just scrolling through it without the sound on
Tice maybe backing reform of the water industry but when it comes to it they will try to make money from it somehow