Debt Monetary Policy Money Creation

The Impending Failure of Monetary Policy

March 23, 2016
fallingmoney

By Andrew Ferguson

Much of the basis for current Monetary Policy around the world comes from the work of Economist Milton Friedman, who won the Nobel Prize in 1976. Friedman professed that an increase in the money supply creates an increase in aggregate demand.   As such, if you expand the money supply, the economy will grow along with it.   His conceptions made up the basis for a school of thought called Monetarism, a widely accepted and utilized ideal in modern economics. There is very little to dispute with the theory itself, but there are certain limitations with the way it is applied by Central Banks around the world. Continue Reading

Debt Money Creation money scarcity

Why there is never enough money

February 16, 2016
chasing-money

By Andrew Ferguson

Across the broader economy, many are feeling the pinch of not having enough money. In an attempt to compensate, governments, individuals and corporations have become grossly indebted. If it seems like there is not enough money to go around, it’s because there isn’t. What many don’t realize is that both the nature of money creation and the mechanisms of borrowing are at the root of this problem. Continue Reading