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:
Overview
considers the basic monetary principles related to economic growth
and foreign debt.
What is a
Buoyant Economy identifies the attributes of a buoyant economy
and illustrates these with a comparison of the attributes of the
Spanish and Philippine economies.
The quality of
money explains how the way money is created has an effect upon
the economy. This helps us understand some of the problems in our
economies.
Money and
Inflation derives an equation for inflation that is linked to the
money supply and to the real output of the economy;
Technicalities of the
Monetary System discusses the theoretical explanation for why bank
credit causes current account deficits and why the solutions
presented in the Optimum exchange rate system and the Guided
exchange rate system bring about current account balances.
Money
and unsustainable debt considers monetary growth and the
associated domestic and foreign debt and compares it to the
relatively slower growing national income, to reveal that eventually
an economy may not be able to service its debt levels and so
experience a financial crisis.
The Great
Financial Injustice compares impact of deregulating the exchange rate and
floating the exchange rate with the fraud that led to the global
financial crisis.
Prosperity for Greece explains the problems of Greece and other
Euro economies and presents a solution. Essentially
personifies and summarises
Saving
the Euro.
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.
"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.
Stock Market Pressure Index
identifies a relationship between monetary
growth and the current account deficit which provides an indication of
the level of investment in the stock market.
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.)
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.
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.
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.