Saturday, October 03, 2009

Richard Werner: G20 ideas not likely to work

The next free seminar at the Centre for Banking, Finance and Sustainable Development is on Wednesday 14th October at 6.00pm at Southampton University. Details here.
Dr Rolf E Breuer ex-chief at Deutsche Bank will speak on lessons to be learnt from the current financial crisis.

Prof Werner will say why he thinks that the measures proposed by the G20 leaders to avoid banking crises won’t work. He will suggest alternatives that should really get at the central problem. Read his recent Financial Times letter (2 Sept) for some clues. Click for the letter here.

A key argument of his is that the object to be achieved is credit creation, and ‘Central bank and bank credit can be expanded most swiftly by stopping the issuance of gilts and getting the government to borrow its existing public sector borrowing requirement from the banks and the central bank’.

This seminar is important for anyone wanting something different to the standard media answers to the economic crisis. Go and help to nurture the counter-culture in economics that is building up!

No comments: