Each time money is used, an epistemology, a metaphysics, a politics, an ethics, and even a theology is evoked. Money condenses the spirit of capitalism. Money did not create capitalism—the early factories and mills were rarely funded by bank loans—yet money transmits, propagates, and vivifies it. This thought-provoking quotation (p. 20) is from Theology of […]
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Julia Giese, Michael McLeay, David Aikman and Sujit Kapadia Central banks have been using a range of monetary policy and macroprudential tools to maintain monetary and financial stability. But when should monetary versus macroprudential tools be used and how should they be combined? Our recent paper develops a macroeconomic model to answer these questions. We … Continue reading Unifying monetary and macroprudential policy
Álvaro Fernández-Gallardo, Simon Lloyd and Ed Manuel Since the 2007–09 Global Financial Crisis, central banks have developed a range of macroprudential policies (‘macropru’) to address fault lines in the financial system. A key aim of macropru is to reduce ‘left-tail risks‘ – ie, minimise the probability and severity of future economic crises. However, building this … Continue reading The transmission of macroprudential policy in the tails
by Jongchul Kim* In a given era, social scientists often share a common philosophical perspective, whether overtly or implicitly, despite studying different subjects. So what if the prevailing perspective among mainstream economists proves problematic, preventing them from providing a comprehensive understanding of the capitalist financial system?In modern Western philosophy, conventional economics is built upon two […]
By Ellis Winningham Oftentimes, we advise people to limit the use of the word “money” when discussing MMT concepts. Although the word is incredibly common, the term is actually …
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No response from union to questions about claim Unite general secretary Sharon Graham has published a tweet in which she claimed credit for an increase in strike pay that predated her taking up the role by several months. Ms Graham claimed that she ‘upped the daily strike rates to £70 when I became general secretary: […]
Total household debt balances continued their upward climb in the third quarter of 2022 with an increase of $351 billion, the largest nominal quarterly increase since 2007. This rise was driven by a $282 billion increase in mortgage balances, according to the latest Quarterly Report on Household Debt & Credit from the New York Fed’s Center for Microeconomic Data. Mortgages, historically the largest form of household debt, now comprise 71 percent of outstanding household debt balances, up from 69 percent in the fourth quarter of 2019. An increase in credit card balances was also a boost to the total debt balances, with credit card balances up $38 billion from the previous quarter. On a year-over-year basis, this marked a 15 percent increase, the largest in more than twenty years.
Banks monitor borrowers after originating loans to reduce moral hazard and prevent loan losses. While monitoring represents an important activity of bank business, evidence on its effect on loan repayment is scant. In this post, which is based on our recent paper, we shed light on whether bank monitoring fosters loan repayment and to what extent it does so.
by LSE Department of Sociology It is with great sadness that we share news of the death of Professor Nigel Dodd on 12 August 2022. Nigel Dodd was Professor of Sociology at the LSE. He obtained his PhD from the University of Cambridge in 1991 on the topic of Money in Social Theory, and lectured at […]