What More Can be Done to Mitigate the Risk of Yet Another Global Financial Crisis?

Online

This symposium is a “not to be missed” event for anybody keen to stay in touch with the complex issues surrounding financial stability, related policymaking and regulatory interventions. Please note that we are intending that the event will kick-off a TTF campaign initiative based on the work of our Keynote Speaker Professor Steve Keen and his many supporters around the world; more about that during the event but to give you a “taster” here is the synopsis for Professor Keen’s part of the programme: (1) The huge increase in private debt in the UK (and globally) since the 1980s (in the UK, from 55% of GDP to a peak of 205%, and now about 160%; (2) Why regulators, following conventional economic theory, don’t see this as a problem (illustrated using a model of the standard “Loanable Funds” vision of what banks do); (3) Why this is wrong since banks don’t actually lend out depositors’ funds but instead create deposits when they lend (illustrated by amending the previous Minsky model to have banks originate loans rather than a non-bank); (4) The necessity to add the private debt to GDP ratio and the credit (change in debt) ratio down to pre-1982 levels in the UK (roughly 60% of GDP, or a full 100% of GDP lower than today; and (5) The necessity for Central Banks and the Treasury to see the level and rate of growth of private debt as of equivalent importance to unemployment and inflation in their economic policies and economic modelling. Our other speakers are Dr. Stephen Hubbard and Professor Sheri Markose.