In a world where economic orthodoxies are being challenged like never before, Scotland has the opportunity to design a system that will be agile enough to deal with the new normal.In my last two articles, I have questioned orthodox economic thinking by examining why QE did not create inflation and what's the point of measuring bond default risk using the debt to GDP ratio in … [Read more...] about We need to talk
Central banks stumble into MMT
An independent Scotland shouldn’t consider for a second running a budget surplus in the early years. It shouldn’t even seek to reduce the deficit – because both these things would simply suck demand out of the real economy. It would harm economic development. Rather we should be driven not by ‘balancing the books’ but by investment. The more we are investing in the economy in … [Read more...] about Central banks stumble into MMT
Where has all that central bank COVID-19 money gone?
The Federal Reserve has committed to pump up to $2 trillion into the system with more if needed. The European Central Bank (ECB) disappointed many in the markets by announcing €750bn with possibly more to come. The UK did its bit with £200bn too.All this on top of what they did during the financial (credit) crisis of 2008-10.These would be eye-watering numbers if people could … [Read more...] about Where has all that central bank COVID-19 money gone?