The soon-to-be released Q3 edition of the British Strategic Review provides a plain English description of how monetarism and Keynesianism impact the wellbeing of the British constituents.
Section 1 clarifies various economic concepts.
Section 2 traces the impact of monetarism and Keynesianism on the wellbeing of British constituents.
Section 3 reviews the impacts of our form of economic management and on the planet and human survival.
Section 4 reviews the recent evidence in the Lords Economic Affairs Committee Report on QE. One participant saw quantitative easing (QE) as a policy without a theory and others made predictions as if there is an underlying theory. The Bank of England (BoE) remains uncertain. Their evaluations conclude they are "still learning about the effectiveness of QE". For over a decade, the government and BoE have therefore experimented with the British economy and constituent wellbeing on a grand scale. The paradoxical aspect of the Terms of Reference of the Committee's review is that it does not touch on the identification of solutions to the crisis created by QE. Fortunately, more substantive evidence from experienced economists, not included in the Economic Affairs Committee witness list, has provided a more realistic perspective on significant mistakes in policy, on the one hand, as well as some proposed solutions, on the other.
This edition of BSR cuts through such uncertainty with clear explanations of several important facts and relationships that are often misunderstood.
Section 5 concerns the economic constraints imposed by the British Constitution.
Section 6 suggests ways to improve the acquisition and beneficial application of knowledge for a more productive economy.
Section 7 provides both theory and practical means to implement solutions to the current economic crisis.
Section 8 is a more detailed technical section which confirms that QE is a policy with no theorical underpinning through mathematical and sector analyses. As flawed theories monetarism and Keynesianism are extremely inefficient means of managing the economy.
List of ContentsPlease note this list of contents is
subject to change before publication.
Monetarism & the real economy
The real economy
The physical assets economy
The financial instruments economy
Employment, electoral significance & the nature of economic value across economies
Economic structural transformation
The more recent policy transformation
Macroeconomics, microeconomics and development economics
Why are macroeconomic policies needed?
Private and public goods
Compliance with ethical behaviour
Processes and organic growth
Contributions to productivity
Compensation for contributions
What causes inflation?
Inflation in the prices of goods and services
Inflation in the prices of assets and instruments
Real economy (goods and services) price inflation, deflation and the currency
Asset economy (assets) price inflation, deflation and the currency
The real income effects of income sources
Constitutional implications of income sources
Real growth and nominal growth
Human capital, tacit and explicit knowledge
Scale of operations
The cost of living and economic growth
Real incomes & currency value
Innovation and real incomes
Endogenous and exogenous money
Liberal and conservative fiscal policies and organic growth
Summary of Section1
Some recent historic perspectives relevant to this discussion
Money volumes and inflation
Why did monetarism take hold?
The identification of alternative policies
What is supply side economics?
1981 as a turning point in policy
An assessment of the monetarist logic
However, money volumes do create inflation
Economic stability & disequilibrium – which is more realistic?
Removing the presumption of equilibrium
The real incomes approach
Inflation and deflation
Towards a consensus model
Where does economic growth come from?
Are there some general objectives?
Why waste time on the QTM?
Quantitative easing and modern monetary theory
Conclusions of on money volumes from any source
Summary of Section 2
The impacts of our form of economic management and on the planet and human survival
TWS issues and productivity declines
Moving from Net-Zero to Net-Negative
The current and future contributions of Locational-State Theory
Summary of Section 3
Comments of the Economic Affairs Committee Report
Summary of Section 4
The impact of the British constitution
Summary of Section 5
The acquisition and beneficial application of knowledge
Summary of Section 6
Pointers to feasible solutions
Summary of Section 7
The progressive atomization of the real economy
The Cambridge equation
The real economy
Quantitative easing and real incomes
A Real Money Theory
Towards an extended Real Money Theory
Expanding the asset data set
Returns to scale, learning, explicit and tacit knowledge
Growth is rising productivity
Exogenous and endogenous dealings
Summary of Section 8
Annex 1: References & notes
Annex 2: Perspectives on macroeconomics applied in this document
Title: Monetarism and the real economy
Main cover title: British Strategic review
Date: Q3, 2021
Production: Decision Analysis Group, SEEL-Systems Engineering Economics Lab.
Publisher; Hambrook Publishing Company, Portsmouth, Hampshire, United Kingdom