Duncan’s Economic Blog

A workplan and an excellent link

Posted in Uncategorized by duncanseconomicblog on November 3, 2009

Yesterday’s post seems to have got a fair bit of interest and attracted some interesting comments. Jolly good.

Lots of questions to answer – and it’ll take more than the comments box to satisfy them.

So the plan is three more posts on this subject this week – starting tomorrow.

I’ll briefly cover Dalton’s ‘Cheaper Money’ policy of 1945-47: the aims, what worked and what went wrong.

On Thursday I’ll answer Luis (and Giles) more theoretical points. And on Friday I’ll try and update the Keynesian debt and interest rate management policies of the 1940s to modern financial markets.

It’s going to be a busy week…

In the meantime Giles has produced an excellent spreadsheet that lets you play with GDP assumptions: have a try. The link is at the bottom of the page – and whilst you’re there have a read of Giles’ ‘Slash and Grow’ report on Osborne’s plans.


5 Responses

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  1. freethinkingeconomist said, on November 3, 2009 at 1:28 pm

    I’m really looking forward to this: thanks Duncan. I think the fact that rates were fixed at – what was it, 2-3% for 20 years – suggests that the current mechanism for apportioning money should not be taken by definition the only way.

    StandingReadyTobeConvinced Economist.

  2. dannyboy said, on November 3, 2009 at 2:36 pm

    Duncan, perhaps in your posts you might consider the two paths open to post keynsian economics. On the one hand we have a return to big government, technocracy and big projects like the kind of public credit and investment I suspect you will advocate.

    On the other we have a more ‘left libertarian’ approach, more hands off, but perhaps equally likely to be able to deliver cheaper capital, reduced inequality and healthy public sevices, and perhaps do it all more cheaply. It seems to me this is kind of Chris Cook’s angle.

    As a final shot I’ll remind you that Keynes said in the GT that the future likely had more to learn from the spirit of Gesell than marx.

  3. Chris Cook said, on November 4, 2009 at 1:19 am


    “It seems to me this is kind of Chris Cook’s angle.”

    Correct, and it converges on Phillip Blond’s “Red Toryism”, which it appears to me is the first genuinely new narrative we have seen in a very long time.

    I actually like his tenets: re-moralise the markets; re-localise the economy; and re-capitalise the poor. Unfortunately he has as yet few if any policies capable – in practice – of fitting the rhetoric.

    Where Blond is coming from a moral Right position cf Distributism, Belloc and all that, I’ve long been interested in some of the highways and byways, particularly Guild Socialism, which was essentially snuffed out by the Fabians as I understand it.

    Also some interesting ideas like Georgism, and the Social Credit movement, not to mention new thinking like Kelso’s Binary Economics, which actually gave rise to US employee stock ownership plans.

    Your parting shot re Gesell is also spot on, I think. Certainly any sustainable global clearing system must have payments made on both positive and negative balances, which is where Keynes’ Bancor borrowed from Gesell. Where I differ from Keynes is that in a disintermediated world I see no need for monolitihic centralised issuers of fiat currency.

    • Chris Cook said, on November 4, 2009 at 1:28 am

      I forgot to mention the brief flowering of the Common Wealth Movement/Party…..


      which was an interesting little political oddity during and immediately after the war.

      I rather like the idea of a new suite of policies which could be swept into a New Commonwealth manifesto, and available to any politician who subscribed to the policies

      eg New Commonwealth Labour; New Commonwealth Liberals and even New Commonwealth Tories (fewer in number, but still possible).

      • dannyboy said, on November 4, 2009 at 10:25 am

        Chris, I completely agree about the need for a new forward looking narrative for the left but which in fact contains something for everyone as you say.

        I don’t think the battle can be won with the old strategies.

        Also the world is a much more complex place than it was in Attlee’s time – decntralisation of decision making must be the answer.

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