"When we think about what is a socially useful financial system, the first thing we need to say to each other is, "What do we mean by 'socially useful?'" ... The first thing to note about this is that conventional cutting edge macro monetary theory is of no help at all in determining what is a socially useful credit credit sector. That is for the simple reason that there is no credit sector in the cutting edge macro models today....
"Money itself is not supposed to exist, even. This has been laid out and explained in many publications. And my point is not to bash macroeconomics as it is today, but my point is that we need to look for other models and other thinking if we want to get an assessment of what is a socially useful credit system.
"Supporting these science fiction models, financially speaking, because there is no finance in them. The models that central banks use have no banks."
University of Groningen
Dirk Bezemer, PhD, is one of the leading heterodox economists in the world. His 2009-2010 work identified the economists who best predicted the Great Financial Crisis and the nature of their economics. His present research is on the monetary causes and consequences of the crisis, including research on the Great Moderation, effects of quantitative easing and the ongoing commodity price bubble. . He has written on and developed an extensive database to segregate money flows within the financial sector from those to the real economy. His work is published in Advances in Complex Systems, Accounting, Organizations and Society, the World Bank Research Observer, the Journal of Development Studies, World Development, Economic Systems, Comparative Economic Studies, the Journal of Economic Issues and the Cambridge Journal of Economics, among others.
In 2011 he organized a seminar with Yanis Varoufakis on solutions to the Eurocrisis. He contributes regularly in the Dutch press and is a frequent invited speaker at international conferences as well as student meetings. His research into an empirical model for the financial sector’s role in growth and in crisis was funded by INET in spring 2011.