The monetary cause of the house price crisis affecting many cities

Bendell, Jem ORCID logo ORCID: (2015) The monetary cause of the house price crisis affecting many cities. In: United Nations Economic Commission for Europe (ECE) Regional Forum on Sustainable Development (RFSD), 14-16 April 2015, Geneva, Switzerland. (Unpublished) Full text not available from this repository.

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In Geneva in April I presented to the UNECE about the monetary cause of the house price crisis that is affecting many cities. I explained, based on my work in ‘Healing Capitalism’, that the more consolidated a nation’s banking system is, the more their lending is focused on real estate, and so this leads to the asset price inflation of housing. Solutions must involve re-balancing the process of new money creation by commercial banks. That can be achieved by promoting more local banks that focus on lending to businesses (e.g. breaking up RBS) and introducing credit guidance so we move away from a situation where over 80% of new credit creation is for real estate. Other options include removing from commercial banks the privilege of creating money. Given that, according to research, most politicians don't even realise that commercial banks create over 90% of a nations’ money supply, we have some way to go before sensible policies even begin to be considered.

Item Type: Conference or Workshop Item (Keynote)
Departments: Research Centres > Institute for Leadership and Sustainability (IFLAS)
Additional Information: Invited keynote presentation.
Depositing User: Anna Lupton
Date Deposited: 10 May 2016 14:51
Last Modified: 12 Jan 2024 14:00
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