The macroeconomics of bank-created money and a Modern Debt Jubilee as a way out of the private debt trap

My friend Dr. Sabri Oncu has established an innovative seminar program at Kadir Has University in Turkey. Called the “Kadir Has Lectures on Global Political Economy”, it has had lectures from a number of non-mainstream economists, including Ann Pettifor, Frances Coppola, Yanis Varoufakis, and Jan Kregel.

Forthcoming lecturers include Louis Philippe Rochon and  Matias Vernengo.  You can find the series here:

In my lecture, I explain how bank credit adds to aggregate demand and income, and therefore how capitalism’s great crises–the Great Depression, the Great Recession, the Panic of 1837, and so on–were caused by credit turning negative.

I also explain how we could remedy the economy via a “Modern Debt Jubilee”. Of course, since Neoclassical economists dominate economic policy, I know that this policy has no better than a snowflake’s chance in Hell of being implemented.

I’ve attached the PDF of my slides here as well (unfortunately Substack doesn’t support Powerpoint files: if you want to download them, please go to the Patreon page

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6.01MB ∙ PDF File