ECOBATE 2011: European Conference on Banking and the Economy (2)

Lord Adair Turner whose speech at this conference affirmed Prof Richard Werner's work that shows how credit creation by ordinary banks drives the economy is worth studying in full.  It is available through the following link:
CREDIT CREATION AND SOCIAL OPTIMALITY A SPEECH BY ADAIR TURNER 

Taking just two extracts from it you will see that Lord Turner is saying precisely what Richard Werner has been saying for many years:   

p3 The most distinctive thing banks do, the essence of their function within the economy, is that they create credit and as a result create spending power.

p4 in fact they don’t just allocate pre-existing savings, collectively they create both credit and the deposit money which appears to finance that credit.

This is excellent news for the UK economy if the powers that be, above the level of Lord Turner, take heed of the implications of his Winchester speech this week.  

There are summaries of the Turner speech on the mondovision website and on the citywire.co.uk website

To see Richard Werner making such statements himself see YouTube by starting at Banking and the Economy and follow through the short series. 

posted by Charles Bazlinton