The general theory of employment, interest and money

It is not too much of an exaggeration to argue that Keynes’ own 1937 review of The general theory of employment, interest and money is the actual masterpiece. In it, he explains quite lucidly the “comparatively simple fundamental ideas which underlie my theory” and in so doing, why, at least, the Book is titled the way it is. → Read More

Money is debt

The traditional story of the genesis of money you know from Adam Smith is simply not true. Commodity money did not emerge as a convenient medium of exchange when barter became too complex. A standardised weight of gold or silver in the form of a coin did not supersede other commodities as unit of account. Credit is not a modern invention to economise on the use of precious metals.

Debt precedes “money” by millennia. → Read More