The Other Financial Crisis – Project Syndicate
Saturday, 3 November, 2012 Leave a comment
The author is far better qualified than I to comment on the matter but I do believe I have a worthwhile, if not ‘contribution’ then, comment or question. Money is no more than a promise based upon the assumption of future economic growth. Is the enabler of innovations (driven by new thinking, collaboration and technology) required to fuel that growth but is constantly being devalued as a result of the current economic climate, so is in short supply: how do we expect to achieve the required growth? Doesn’t that make ideas and innovation a more bankable currency than conventional money? My conclusion: This IS an ‘Innovation Economy’ where ideas are worth more than money but will be left to whither on the vine without it!
Proper access to credit for productive segments is an integral part of a well-functioning economy. Without it, growth falters, job creation is insufficient, and widening income and wealth inequality undermines the social fabric. That is why any comprehensive approach to restoring the advanced countries’ economic and financial vibrancy must target the proper revival of private credit flows.