25 February 2010

More on Money

As the bank results roll in, and the bonuses roll out, it is good to have a reminder of where this money came from. This letter to the FT from an economics professor at Strathclyde makes the point that the money queased into the economy might have achieved its aim if it had been spent directly into the real economy, rather than sent via the banks, who merely absorbed it into their profits. He does not make the additional point that it could have funded the Green New Deal type proposals we desperately need to build our low-carbon infrastructure.

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