New economic theory defines outcomes
The keynote speaker at this weekend’s DSC Conference will present a ground-breaking paper of international significance which shows why both the main economictheories of the twentieth century have failed and what to do about the world financial situation.
This paper offers a definitive statement of economic activity to replace Keynesianism and Monetarism. It amends the Fisher equation of exchange (MV=PQ) to allow for structural changes in the financial system that took place after the Bank of England was set up in 1694. An economic debt “model” demonstrates the underlying mechanics of private debt-based banking and the relationship between the productive and investment sectors.
The “model” is definitive in that it describes actual economic activity. It is used to provide an historical profile of the New Zealand economy between 1978 and 2008 but it can be used, with appropriate data and calibration, to define macro-economic outcomes in real time.
DSC Leader Stephnie de Ruyter said that she was delighted that Lowell Manning had agreed to present his paper at the Party’s annual conference.
“Mr Manning’s paper challenges all of us to think beyond orthodox theory. It is a timely reminder of the failure of accepted economic wisdom to deliver a financial system which works for everyone, instead of just for a favoured few” she said.
“Presentation of the paper, entitled ‘The Ripple Starts Here: 1694-2009 Finishing the Past’, at this year’s conference will stimulate debate on monetary reform developments.”
Published: September 2009