Posts Tagged ‘Chicago’

file0001053186625

For an economy to grow it needs the money supply to expand. That’s the point that those who favour a return to the gold standard overlook. In a static economy with no innovation and which will look the same in a hundred years’ time, a gold standard would do nicely. But in an economy that has this thing called innovation, a gold standard spells permanent depression. This all begs the question: if we need the money supply to grow, whose responsibility should it be to decide how this should happen and by how much? Adair Turner, former chairman of the FSA, has a plan and it involves debt forgiveness and governments funding their spending via the printing press. (more…)