What is a Buoyant Economy?

Welcome to

Buoyant Economies

Explaining what is happening in our economies and what can be done about it



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Many economies are experiencing slow rates of economic growth, high unemployment, rising domestic and foreign debt and high rates of inflation.  

This site seeks to diagnose the cause of those problems and present remedies.  It is based upon the author's experience as an economist.  

The following is a summary of the material on this site together with links to the pages, papers and worksheets:

  • The Free Market Monetary Crisis considers the economic factors that have brought about the monetary crisis among "free market" economies.

  • Globalization of Trade uses an analogy to explain the effects of globalization on industries supplying the domestic economy.

  • The Demise of Australian Industry provides links to articles about Australian businesses that are suffering because the exchange rate system is delivering inappropriate import prices.

  • Alleviating poverty with economic growth describes policies for sustainably raising the circulating money to raise incomes to alleviate poverty. 

  • "Safe mode" for the economy proposes a series of steps that can be taken during a monetary crisis to put an economy onto a stable and sustainable footing.

  • The guided exchange rate and liquidity system provides an outline of a variable exchange rate system that ensures balance of payments stability and allows the central bank to influence the exchange rate and the growth of liquidity to provide exchange rate stability and economic growth.

  • Macro-economic model provides a simple macro-economic model that can be downloaded and demonstrates the effect of the floating exchange rate system and the optimum exchange rate system on the economy.

  • A new European Monetary Union proposes a monetary model for economic stability and full employment for Europe.

  • Eine Neue Europäische Währungsunion schlägt einen monetären Modell für die wirtschaftliche Stabilität und Vollbeschäftigung für Europa.

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    The causes of the 2008 credit crisis considers the economic history that led to that financial and economic disaster.

  • Free trade considers the effect of protection of the monetary system on the manufacturing.

  • Understanding the float explains the monetary effect of the floating exchange rate system on debt and the performance of the economy.

  • Economic power and military power considers the use of economic policies as a military weapon.

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The following is a list of papers available in PDF and word format. The first 3 were presented at the Australian Economic Society Conference in Adelaide in 1995. (Note that these are large files and they may take a while to download.)

1.     The failings of monetary policy in Australia (pdf 720 KB)

2.     The failings of the floating exchange rate system (pdf 624 KB)

3.     An introduction to the optimum exchange rate system (pdf 243 KB) (See also Saving the Euro and  Stimulating the UK economy while providing monetary and financial stability)

The following paper was presented  at the Australian Economic Society Conference in Canberra in 1996.

4.     Floating exchange rates and sunken economies (pdf 693 KB)

The following paper was presented to a conference of Post Keynesian Economists in 1999 in Knoxville Tennessee.

5.     Generating balance demand and supply to achieve full employment and price stability (pdf 167KB)

Other papers of interest include:

6.     Submission from Buoyant Economies to the Financial System Inquiry  Submission made 20 November 1996 (pdf 107 KB)

7.     Submission to the Industrial Relations Commission regarding the ACTU Living Wage Case (pdf 352 KB)

8.     Rising foreign debt, slow economic growth and high unemployment (pdf 173 KB): A brief explanation of their cause in Australia and how to overcome them. The updated graph of relative exports and imports is available here. The updated graph of the current account deficit and money is available here. Published May 2008.

9.      Submission to the NZ Inquiry into the future monetary framework (MS Word 293 KB):          The causes of inflation and an approach to reducing inflation and managing foreign debt.

10.    Submission to the Australian Senate inquiry into Competition within the Australian banking sector.  Considers the difference between banks and non-bank financial institutions and the environment required for healthy competition.

11.    Submission to the New Zealand Savings Group. Considers different forms of saving and discusses the US response in 1973 to the growth of bank credit and declining foreign reserves. Recommends an approach to manage bank lending according to national savings.   

12.    International Monetary Alliance (MS Word 45 KB):  An international institution for mutual support of currencies to provide balance of payments stability and exchange rate stability suitable for economies with fixed and variable exchange rates.

13.  Mining Investment Boom: A Double Edge Sword for the Australian Economy (pdf 211 KB) This article was first published by Finsia in its inFinance magazine in August 2011.  

14.    Saving the Euro:  Discusses the causes of the failure of the Euro. Provides a painless remedy for Europe and the Euro. A number of options are tested in models before a sustainable system is proposed.

15 Submission to the Financial System Inquiry (pdf) (html) - Includes a new formula for the relationship between bank credit and inflation.


Last update: 15 May 2021


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