engleski

Between Debt and the Devil : Money, Credit, and Fixing Global Finance

In a nutshell, the main message of the book is how to prevent new financial crisis, how to re – regulate financial industry (private banks), how to limit excessive credit creation by the commercial bankers, without sufficient influence on the money supply by the central banks and regulators, all in order to prevent boom - bust Mynskian cycles and instability of disinflationary phase of financial cycles when there is a deflation threat that is devastating for the unemployment (deflationary spiral) and social/political stability. „A key theme of this book is the danger of too much debt. Beyond the certain level, increasing leverage makes the economy more fragile“ (p. 134). What is important also is that dr. Adair Turner challenges the conventional wisdom of the financial intermediation of the banks, in which banks create money (lending to the corporate sector of economy) on the basis of deposits collection (of households). Dr. Turner suggests how to solve dilemma between debt (debt overhang) and the devil (financial crisis and secular stagnation) within new paradigm for post – crisis economics? „Pre – crisis orthodoy combined total anathema against fiat money finance with an almost totaly relaxed atitude to private credit creation. Optimal future policy must reflect reality that we face a choice of dangers and must combine far tighter controls on private credit creation with the disciplined use of fiat money finance when nedeed“ (p. 240). He also explained theoretical flaws of pre – crisis orthodoxy, why central bankers and policymakers did not see financial crisis is coming? The book provides nicely written and well structured review of monetary economics and main currents of post – crisis monetary theories. It is necessary reading for bankers, policymakers, central bank and government decision - makers, in advanced as well in emerging economies, in designing post – crisis financial and economic policies.

money ; credit ; global finance ; financialization ; monetary theory and policy

Prikaz knjige (na slovenskom jeziku) objavljen je i u časopisu Bančni vestnik, 65 (2016) (12) 47-49 ; ISSN 0005-4631.