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  • A welcome message from China Spectator's new editor | Business Spectator
    that accompanies your Email Address Remember me Log in Request new password Dear Readers My name is Peter Cai I m the new editor of China Spectator My colleague Fergus Ryan will be reporting from Beijing soon I don t think it s necessary for me to tell you about the importance of China to Australia or indeed the world Suffice to say the country is on a transformational path from being the factory of the world to the world s largest consumer market Though China has largely freed itself from evangelical Maoism it is still living under the shadows of an authoritarian Communist Party which is not in a hurry to implement political reform But there is an emerging consensus in civil society that further economic reform is not possible without accompanying political change Covering China well and accurately is a huge challenge The country is big complex and dynamic What is true in Beijing or Shanghai not may be so accurate in coastal provinces like Fujian or Guangdong China is also a fast changing place where business conditions regulatory and political environments are evolving at breath taking pace Increasingly China is also coming to our door step from companies investing abroad to 80 million jet setting tourists who are exploring the world beyond the Great Wall We tend to observe China from certain prisms one party dictatorship human rights abuses a slowing economy teetering on the edge and a bellicose foreign policy that is threatening regional stability While many observations are true they don t capture the dynamism of the Chinese economy or it s society Social media platforms like Weibo and WeChat are acting like foreign concessions in early 20 th century China which provided crucial open space for citizens to engage in lively debate about off limit topics Heroic investigative reporters are bringing down corrupt officials and exposing corporate scandals There is also no shortage of commentators criticising Beijing s policies though challenging the legitimacy of the Party is still off limit A powerful private sector which employs more than half of the country s labor force is transforming China s economic landscape Companies like Alibaba Lenovo Huawei and Tencent are simply world class and they re taking on their more established Western rivals A young generation of private entrepreneurs who are mostly educated in the West are re thinking their relationship with the government and looking for opportunities abroad They usually maintain a second home in places like New York or Melbourne At China Spectator we want to bring you fresh stories about China We want to take you to a less well trodden path and challenge what you know about the next superpower We want to be a conduit to bring you the best economic and business writing in the Chinese language an often overlooked but important source We want you to meet Chinese heirs or heiresses to some of the largest industrial empires in China and understand what they think about business and

    Original URL path: http://www.businessspectator.com.au/article/2013/12/5/china/welcome-message-china-spectators-new-editor (2014-01-12)
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  • Kingho Energy Group stages tilt at Carabella | Business Spectator
    Deals Policy Politics Smart Energy Latest stories Marking the milestones of 2013 Australia s transition to a clean energy economy took some political blows in 2013 but progress on the ground was heartening with energy efficiency solar and wind all providing tangible proof of their future potential A fifth year of declining power consumption Power consumption fell again in 2013 dipping 2 8 per cent across the National Electricity Market as scheduled renewables rose to 12 per cent of the market Industries Advertising and Marketing Agribusiness Automotive Aviation Construction and Engineering Education Family Business Financial Services Food and Beverages Gaming and Racing Health and Pharmaceuticals HR Industrial relations Information Technology Infrastructure Insurance Manufacturing Media and Digital Resources and Energy Professional Services Property Retail Small Business SME Telecommunications The Ashes Tourism Transport and Logistics Video KGB TV China Spectator CEO Hub Leadership Lab Management Insights Young Leaders Knowledge Centre Adapt or Die Knowledge Hub Business Accelerators Webinars eBooks Menu Kingho Energy Group stages tilt at Carabella Peter Cai 5 Dec 2013 1 57 PM 1 Industries Resources and Energy Economy China Chinese mining company plans to inject 900 million into troubled miner You must be logged in to read this article Not a member yet Register today Business Spectator is available on all of your devices so you can access the latest news and commentary where and how you like Register now Already a member Sign in here Email Address Enter your Email Address Password Enter the password that accompanies your Email Address Remember me Log in Request new password One of China s largest private mining companies has made a 66 million takeover bid for the ASX listed Carabella Resources Kingho Energy Group which has extensive assets in China Africa and Central Asia intends to inject 900 million into developing Carabella s projects if it succeeds in its bid for the financially troubled junior miner We wish to acquire Carabella as an important first step in Kingho s strategy to develop an Australian headquarters for our global resources and development business outside of China Kingho chairman Qinghua Huo said The move by Kingho follows a string of Chinese private companies investing in Australia resources and agricultural assets most notably the aquisition of Kilcoy abattoir by New Hope Investment Fund one of the largest privately held Chinese agri business groups Kingho s chief investment officer Dennis Shen said Australia s strong resource based economy and sound regulatory financial and legal framework made it the ideal place to set up the group s global operation Kingho s Sydney headquarters will control all of the company s non China assets including coking coal assets in Sierra Leone Mozambique and Kazakhstan Richard Gannon a managing director from Deutsche Bank who is advising Kingho on the takeover said the Carabella is struggling to fund its projects with Chinese state owned companies shying away from Australian investments in recent years Print this page Related articles 10 Jan Korea China jostle for Aust resources 10 Jan China

    Original URL path: http://www.businessspectator.com.au/news/2013/12/5/china/kingho-energy-group-stages-tilt-carabella (2014-01-12)
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  • Cashed up China Inc needs to spend | Business Spectator
    US Treasury notes still offer the most secure and liquid market even after the recent scare over Washington s ability to honour its debt obligation Yi said he was open to all suggestions about how to invest the country s vast holding which may include farming out the management of funds to international fund managers private equity firms and banks In fact China Investment Corporation has established a 500 million resource fund to be managed by Australian bankers and managers for investment in small to medium cap resources projects However diversification can only address the problem up to a point Yi said the only cure for China s oversized foreign reserves is to reduce the current account surplus which means importing more The only prescription is to achieve a current account balance We need to import more get people to spend more on overseas holidays buy more services from abroad and invest more overseas Yi told Caixin magazine this is the simplest solution This signals a more radical departure from China s mercantilist policy of encouraging exports and restricting imports At the third plenum of the 18 th Party Congress Beijing stated its goal of adopting a market based mechanism in order to achieve a current account balance Yi said Beijing had neglected the needs of the Chinese middle class and regarded some of the goods they wanted as luxury goods that deserved high duties It is impossible to talk about China s large foreign reserve without mentioning the contentious issue of exchange rate policy which is a festering sore between China and the United States The United States has consistently criticized China s policy of keeping the yuan artificially low and Congress has been pressing Treasury to label China as a currency manipulator Yi says China is very close to floating its currency and as a matter of fact the central bank had not intervened in the foreign exchange market for most of the 2012 Chinese exporters have also been complaining loudly about the stronger yuan which has appreciated 34 per cent against the US dollar since July 2005 However China is also benefiting from the greater buying power that comes with a stronger currency As a major importer of commodities China bought 58 million tonnes of soy beans 270 million tonnes of oil and 700 million tonnes of iron ore last year A stronger yuan helps China to offset the high cost of all these imports Yi a former economics professor at Indiana and Peking universities said the exchange rate between the yuan and the US dollar was very close to equilibrium and expected the yuan to float soon He didn t however rule out intervention in the foreign exchange market by the central bank in the future However he made clear that future intervention must be rule based and free from political interference I want to put the power to meddle in the foreign exchange market inside a cage and that cage must be transparent he said However Yi freely admits there are powerful vested interests opposed to further appreciation of the yuan and public opinion is not necessarily on the side of the central bank When and if China floats its currency it will be a major milestone in the country s effort to integrate into the global economy The changing attitude towards imports and the foreign reserve are welcoming signs that the country is playing its part in the great rebalancing of the world economy Australian exporters should rejoice at the possibility of a further opening up of the largest market in the world Print this page More from Peter Cai 10 Jan Australia is not the key to China s resource prison 09 Jan China s shock and ore at the Australian way 08 Jan Australia s brave new world for Chinese investors 07 Jan Paper tiger China s potential debt disaster 03 Jan Mao s proletariat paradise lost Related articles 10 Jan Korea China jostle for Aust resources 10 Jan China trade balance contracts 10 Jan Volvo Cars sales up in 2013 10 Jan China s Fosun buys Portuguese insurer in privatisation 10 Jan Australia is not the key to China s resource prison More from Business Spectator Technology Adapt or die Commercial The Future of Energy Family Business Alan Kohler s Family Business China China Spectator Please log in or register to post comments Comments on this article Comments Policy John Citizen Thu 2013 12 05 12 06 Why don t we just keel over now and hand everything left of value over to the Chinese on our last piece of family silver It would avoid so much pain I mean it s not like they can t be trusted Just ask the Tibetans the protesters in Tiananmen Square of 1989 the Uyghurs the countless unfairly incarcerated in abysmal conditions It is a financial inevitability that a big rich guy with 1 3 billion people will always beat the little in debt up to his eye balls guy with 20 million UNLESS the little guy is quick nuanced and smart about how to play the game These things Australia is not I just can t wait for the Free Trade agreement to be pushed through I ve heard it comes with a free barrel for every Australian to make it easy to bend over Colin Barsby Fri 2013 12 06 11 22 Please tell me it s a Barrel of laughs and not the Deliverance type Iggy Noranzisblis Thu 2013 12 05 12 43 the economist created a fantasy shopping list because not only are the items on it a fantasy the assumption that china s holdings of USD are somehow deployable reserves is also a fantasy Michael pettis the preeminent china observer in my view explains this well http blog mpettis com 2013 10 hidden debt must still be repayed what china can do is change the rate at which it accumulates USD from this point on convertability of the yuan

    Original URL path: http://www.businessspectator.com.au/article/2013/12/5/china/cashed-china-inc-needs-spend (2014-01-12)
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  • Peter Cai | Business Spectator
    has enough financial firepower to stop the whole system from collapsing by Peter Cai 11 31am December 19 4 comments Vancouver s home truths for Australia s China connection Alongside interest rates demographic change and the employment rate China s economic growth has a significant impact on Vancouver s real estate market Australian property watchers should take note by Peter Cai 2 33pm December 18 15 comments China must end its economic apartheid South Africa s staggering economic growth under its apartheid regime bears an eerie similarity to the China of today If China is to succeed it must draw some lessons from South Africa s experience by Peter Cai 10 58am December 17 8 comments Trujillo s parting gift for Telstra China The telco s former chief executive may have attracted plenty of criticism but his foresight on investing in China shouldn t be overlooked by Peter Cai 11 15am December 13 6 comments Australia s car component makers turn to the East For car parts manufacturers the centre of gravity has shifted to Asia Some have already grabbed the opportunity and are being handsomely rewarded by Peter Cai 11 20am December 12 9 comments The silver lining in China s smog Reining in China s overheated steel industry has proven an impossible task for Beijing but now the country s pollution problem could provide a solution by Peter Cai 10 36am December 10 7 comments Prepare for a wave of Chinese private investment A new era of Chinese investment in Australia is upon us and this time it s not driven by large state owned enterprises but by more nimble Chinese private interests by Peter Cai 10 51am December 06 15 comments A welcome message from China Spectator s new editor New editor Peter Cai outlines his vision for China Spectator by Peter Cai 3 02pm December 05 5 comments Kingho Energy Group stages tilt at Carabella Chinese mining company plans to inject 900 million into troubled miner by Peter Cai 1 57pm December 05 1 comment Cashed up China Inc needs to spend China s vast foreign exchange reserves have reached peak capacity Now the country s central bankers are looking for ways to invest the country s vast holdings including a 500 million Australian resource fund by Peter Cai 11 14am December 05 12 comments Australia is not the key to China s resource prison CITIC Pacific executives played on China s fears of resource insecurity to justify the terrible performance of their Pilbara mine It s an argument that does more harm than good to both China and Australia by Peter Cai 7 12am January 10 11 comments China s shock and ore at the Australian way The massive cost blowouts for CITIC Pacific s mining project in WA will remind Chinese investors of the pitfalls of being ill prepared for Australia s luxurious work conditions environmental rules and native title demands by Peter Cai 7 18am January 09 26 comments Australia s brave new

    Original URL path: http://www.businessspectator.com.au/contributor/peter-cai?destination=taxonomy/term/162816 (2014-01-12)
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  • Oh my, Paul Krugman edition | Business Spectator
    real GDP growth since 1990 wysiwyg field contenteditable false wf deltas 2 wf field field wysiwyg media wf formatter aibm ui media output wf settings style full width wf cache 1387135615 wf entity id 720056 wf entity type node That s a hell of a big gap to fill But please let s not fill it with yet more bubbles Steve Keen is Associate Professor of Economics Finance at the University of Western Sydney and author of Debunking Economics and the blog Debtwatch Print this page Oh my Paul Krugman edition Steve Keen 16 Dec 2013 6 26 AM 17 Economics and Investment Strategy Economy Economy More from Steve Keen 09 Jan Blowing bubbles and the stagnation puzzle 23 Dec Why Australia must avoid austerity 09 Dec When economic theory fails the maths exam 03 Dec A neverending debt trap 26 Nov End this Depression Never Related articles 12 Jan Obama picks Fed vice chair 11 Jan US jobs growth slows sharply 10 Jan Korea China jostle for Aust resources 10 Jan China trade balance contracts 10 Jan New home sales lift in November More from Business Spectator Technology Adapt or die Commercial The Future of Energy Family Business Alan Kohler s Family Business China China Spectator Log in to post comments Comments Doesn t this imply that the Submitted by Karl lastName on Mon 2013 12 16 08 55 Doesn t this imply that the whole system is a ponzu scheme where new debt is required to keep the wheels turning Log in to post comments haha i realise it was an Submitted by Drew Powers on Mon 2013 12 16 13 53 haha i realise it was an innocent typo but ponzu is a tasty citrus sauce common in japanese food the thought that it is subversively taking over the world economy is quite amusing Log in to post comments Economics may be dismal but Submitted by Mark Welch on Mon 2013 12 16 09 43 Economics may be dismal but calls itself a science It s disconcerting to this biological scientist to find something so basic as debt demand needs the question mark Issues like this are matters of OPINION Desire without the means to consummate it effectively doesn t exist and the means to consummate without the desire also doesn t exist A bank s rising leverage ratio might CREATE effective capital from NOTHING which when lent drives activity my ACTUAL capital if parked at the bank doing nothing has disappeared How the banks derive the capital they lend is the key to their profits solvency but doens t matter to he economy What is or isn t happening in the economy has EVERYTHING to do with what comes out of the banks and VERY LITTLE to do with what goes in Their machinations are hugely important in the system Krugman s thinking has always seemed to me unimpressive He gets too much air time Velocity of money must be key and a more interesting Krugman would come up with a formula analogous to e mc squared Fast money weighs heavy money that s parked weighs nothing it doesn t exist to the economy unless it starts to move etc That applies to the massive QE funds lent to the US banks and back deposited with the Fed itself Thsoe funds have done nothing for the ecnomy but they have done the job I presume they were intended to do artificially improve the numbers for those banks so nudge them back to solvency such that they can resume their necessary machinations I think Krugman s original conclusions fail the common sense test and Keen has to be right Log in to post comments Steve 12 is earth rattling Submitted by Arne not available on Mon 2013 12 16 10 34 Steve 12 is earth rattling I fear it might even be an underestimate I was taught in the eighties about the money multiplier and that credit creation was the source of the business cycle so I find it difficult to understand that supposedly esteemed economists do not see your logic My concern is that they might not understand the full consequences of QE If there has been approximately 10 trillion of injections and this has been levered thrice then we have thirty trillion worth of bubbles in a roughly 80 trillion global economy In other words a gap of around 35 I find that very frightening and I cant imagine that any global authority would be fearless enough to rock the boat right now The focus seems to be to obtain growth at any cost but in my view this would ultimately mean that the following cycle would be even more extreme than the current one I just hope we can avoid a conflagration if the bubbles all pop together Log in to post comments Thanks Doctor you get people Submitted by Ken not available on Mon 2013 12 16 10 43 Thanks Doctor you get people thinking and you do it in a very logical manner Growth is one of those weird concepts that changes the normal paradigm of economics into pure philosophy We know that the worlds population will increase by 50 over the next 30 40 years so in order to stay in the same position we have to move a long way The universe started because of the big bang and the big bang was the product of potential difference All business is created on the basis of potential difference make something and sell it for a profit and that is potential difference The worlds investment banks are based on potential difference and they use currency variations potential difference to make profits Now lets get back to fiat money whats the difference between money and toilet paper The difference is that Fiat money carries an interest rate That is my 1000 can earn me an additional 50 per year potential difference if I put it in the bank Now we come to

    Original URL path: http://www.businessspectator.com.au/article/2013/12/16/economy/oh-my-paul-krugman-edition (2014-01-12)
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  • Economics' odd couple highlights a Nobel folly | Business Spectator
    width wf cache 1382322927 wf entity id 630876 wf entity type node He also maintains though he didn t originate a stock market index which compares the price of stocks now to their accumulated earnings over the previous decade see Figure 2 Figure 2 Shiller s long term share PE ratio data available here wysiwyg field wf deltas 1 wf field field wysiwyg media wf formatter aibm ui media output wf settings style full width wf cache 1382322927 wf entity id 630876 wf entity type node These two contributions in effect make him the Tycho Brahe of economics and for those alone I support the award to him Economics generally behaves as a pre Galilean discipline in which observation comes a very poor second to theoretical beliefs Shiller has instead always emphasized that the data must be considered especially when it contradicts beliefs which is so often the case in economics The clincher for me however comes from Shiller s third contribution his personal courage in speaking out against the economic mainstream in the lead up to the bursting of the DotCom bubble in 2000 and during the Subprime bubble I ve spent 40 years as a rebel in economics so it s no problem for me to lambast conventional thinkers as I did during a session of the American Economic Association s annual conference in Denver in 2011 But at that same session I saw how much personal intimidation shapes the debate within American economics The session called Adding A Bit More Creativity to the Graduate Economics Core was organized by David Colander a respected textbook writer who is more open than most to including non orthodox thought in the curriculum David s intention was to consider how the staunchly neoclassical core of the graduate curriculum might be expanded to allow in some alternative viewpoints Not a bad idea you might think especially since this was 4 years after an economic crisis that Neoclassical economics completely failed to anticipate But instead John Cochrane and others on the panel hijacked the discussion by interpreting the topic as how can we get more innovative students to undertake economics PhDs The body language against even discussing alternative thought was a prime lesson in primate behavior Somehow Schiller has managed to speak out over decades about and against bubbles in asset markets despite the primal peer pressure against him For that reason were I in the audience on December 10 I would join the standing ovation to him And Fama Curiously he has also done some empirical work that I find extremely valuable Two papers of his in 1999 provide empirical support for my own work modeling the change in corporate debt as being driven by the difference between retained earnings and desired investment The leverage and debt regressions Table 4 then confirm that for dividend payers debt is indeed the residual variable in financing decisions My favorite Fama paper is one where he empirically disproves the Capital Assets Pricing Model which is

    Original URL path: http://www.businessspectator.com.au/article/2013/10/21/economy/economics-odd-couple-highlights-nobel-folly (2014-01-12)
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  • Tobin's lesson on logic and banks | Business Spectator
    drops dollar notes out of helicopters Let us suppose now that one day a helicopter flies over this community and drops an additional 1 000 in bills from the sky Friedman said On the empirical front not only did the Loanable Funds vision of lending mean that proponents of this view were sanguine about the dramatic growth in bank debt prior to the crisis see Figure 3 while endogenous money proponents were raising the alarm about it it also means that they can t fully understand why business as usual hasn t resumed after it Figure 3 Pride before the Fall Rising debt the prelude to crisis wysiwyg field wf deltas 1 wf field field wysiwyg media wf formatter aibm ui media output wf settings style full width wf cache 1378161001 wf entity id 606986 wf entity type node Well they do have the zero lower bound argument but I reckon that endogenous money provides a stronger one Here I m going to push the envelope a bit and put forward a minority position within endogenous money the implication that I Michael Hudson Dirk Bezemer Matheus Grasselli and with a slightly different approach Richard Werner derive that effective demand in a credit driven world is income plus the change in debt I stress that this is a minority position it is disputed by many who identify with endogenous money and regarded as an error of double counting and it s one reason that I m currently working with mathematicians at the Fields Institute is to answer this objection Such disputes are a healthy part of the development of economic thought over time Sometimes we find this way that we ve made a mistake or underestimated the importance of some issue as I clearly did when I used not to use double entry book keeping in my monetary modelling That s healthy and it s important not to have so much ego in the game that you re unwilling to change your mind over time as Tobin clearly did and as I hope Krugman will too on this topic That said I use this still contested argument to pinpoint when the crisis began and why because of a dramatic fall in the growth of private debt from 2 trillion plus per annum to minus 0 5 trillion excluding finance sector debt for reasons I explain here and to identify when an apparent but tepid recovery began in mid 2010 as the change in demand started to rise again see Figure 2 Figure 4 Collapse of debt financed demand in 2008 recovery from 2010 in the USA wysiwyg field wf deltas 3 wf field field wysiwyg media wf formatter aibm ui media output wf settings style full width wf cache 1378161001 wf entity id 606986 wf entity type node The correlation of the change in private debt with vital macroeconomic indicators such as the unemployment rate long proceed the period of the zero lower bound which as noted is the New Keynesian

    Original URL path: http://www.businessspectator.com.au/article/2013/9/3/global-news/tobins-lesson-logic-and-banks (2014-01-12)
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  • The getting of wisdom | Business Spectator
    lending don t matter yes commercial banks unlike other financial intermediaries can make a loan simply by crediting the borrower with new deposits but there s no guarantee that the funds stay there refutes in one fell swoop a lot of the nonsense one hears about how said mechanics of bank lending change everything about the role banks play in the economy Banks are just another kind of financial intermediary and the size of the banking sector and hence the quantity of outside money is determined by the same kinds of considerations that determine the size of say the mutual fund industry There s no doubt that these 1960s papers this one in particular by Tobin support Krugman s argument that banks are just one kind of financial intermediaries amongst many and deserving of no special importance in macroeconomics You can see that Krugman s modern description of lending being a transfer from more patient to less patient agents in which banks are immaterial and can be ignored WLOG without loss of generality as an echo of Tobin s argument from 50 years ago a view that Tobin was careful to describe as a new one and not the orthodoxy at the time According to the new view the essential role of financial intermediaries including commercial banks is to satisfy simultaneously the portfolio preferences of two types of individuals or firms On one side are borrowers who wish to expand their holdings of real assets beyond the limits of their net worth On the other side are lenders who wish to hold part or all of their net worth in assets of stable money value with negligible risk of default So yes if Tobin s new view circa 1963 is the last word on the role of banks in macroeconomics then to switch to a sporting metaphor it s a game set and match and perhaps even Championship for Krugman and the Loanable Funds view of money while I and all of the Endogenous Money crowd should put our economic racquets away and take up macramé instead Only Tobin 1963 isn t the last word and not even from Tobin To jump back to the religious metaphor there s yet more in the Tobinic Talmud and I suggest that Krugman moves on from the Old Testament scholarship he undertook in reading Tobin the Younger and consider the New Testament of Tobin the Elder For starters take a look at the counterpointed excerpts in Table 1taken from the 1963 paper that Krugman relies upon the first column and a paper from 1982 that Nathan Tankus discovered in his excellent riposte to Krugman s post Table 1 Comparing Tobin 1963 with Tobin 1982 The difference between the Old and New Tobin is as stark as that between the Old and New Testament Not only is there an emphasis on the uniqueness of banks in that 1982 paper Tobin also makes copious use of T accounts and double entry bookkeeping to explain why banks do matter So just as the Testament message moved from An eye for an eye to Turn the other cheek Tobin moved from banks don t matter and the belief that banks create money is a shibboleth to banks are crucial to macroeconomics and they can and do create money And whereas Tobin the Younger imagined that newly created bank money could be taken out of the system in a form other than bank deposits or cash Tobin the Elder realises that those are the only two options at the systemic level Individuals might get out of bank deposits into say gold but to do so they transfer money from their deposits in one bank into the deposits of the gold dealer in another bank The only way for money not to be held in a bank is for it to be converted into some other kind of asset that is not a bank liability first The only candidate here is cash notes and coins which you can insist on when you make a withdrawal you might insist on gold instead but a bank is under no obligation to deliver it in response to your withdrawal Notably as Cullen Roche pointed out in his reply to Krugman there were so many on this one that Frances Coppola referred to it as Open season on Krugman both Tobin 1963 and Tobin 1982 agree that banks can create money by a double entry procedure creating a loan and a deposit at the same time Tobin 1982 states that when a bank makes a loan to one of its customers it simply credits the amount to the borrower s account the 1963 version was a more abstruse a bank can make a loan by writing up its deposit liabilities The difference was that Tobin the Younger dismissed this as unimportant whereas Tobin the Elder saw it as significant An interesting addendum in deciding what Tobin really meant which in this case is the question did Tobin support Loanable Funds or Endogenous Money is some correspondence he undertook with one of the doyens of the endogenous money approach my friend and colleague Stephanie Kelton who is the chair of the Economics Department at the University of Missouri Kansas City Tobin wrote to her spontaneously in response to a Levy Institute working paper of hers on money which was emphatically in the Endogenous Money camp see figur e 2 His one criticism of the paper at that stage was not that in it she decided to follow Minsky and treat the creation of money as a balance sheet operation but that it didn t cite his dictionary entry on money in The New Palgrave though she did cite his 1998 book Money Credit and Capital So what was Tobin doing initiating correspondence with and commenting on papers Stephanie notes that Tobin suggested the quote on page 160 of The Role of the State and the Hierarchy of Money by someone whose views on money

    Original URL path: http://www.businessspectator.com.au/article/2013/9/2/economy/getting-wisdom (2014-01-12)
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