Adair Turner

Adair Turner

Between Debt and the Devil: Money, Credit, and Fixing Global Finance

Economics/
Wed 11 November 2015

Adair Turner

Between Debt and the Devil: Money, Credit, and Fixing Global Finance

Adair Turner
Wed 11 November 2015,

Adair Turner sets the record straight about what really caused the global financial crisis in 2008: it didn’t happen because banks are too big to fail – our addiction to private debt is to blame.

He challenges the belief that we need credit growth to fuel economic growth, and that rising debt is okay as long as inflation remains low.  In fact, he argues, most credit is not needed for economic growth—but it drives real estate booms and busts and leads to financial crisis and depression.

He explains why public policy needs to manage the growth and allocation of credit creation, as well as why debt needs to be taxed as a form of economic pollution. He shows why we need to reject the assumption that private credit is essential to growth and fiat money is inevitably dangerous. Each has its advantages, and each creates risks that public policy must consciously balance.

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