A New Model of the Economy

A New Model of the Economy incorporates into both micro- and macro-economic analysis this basic and universal feature, thereby bringing economic theory into much closer touch with reality. Such phenomena as shortcomings of public finance, gross disparities of wealth and income, regional problems, the recent difficulties of sub-prime mortgages and much else become explicable with reference to the introduction of rent into the analysis.

At the same time, related topics of money, credit and interest are subjected to searching questions, such as 'How do banks create money?' and 'Why is there an interest rate at all?' The answers point to a way out of the current confusion over the proper role of the banking system.

Finally, taxation is examined, with a view to how present-day taxes inhibit the economy by their damaging impact on the margin of production, defined with reference to land. This leads to a conclusion which draws together the various elements of the 'new model', and which has serious implications for any economist or politician hoping to remedy ominous symptoms of disaster, like the current banking crisis, in today's economies. In short, the book offers a model for fundamental reform.

About the Author:
Brian Hodgkinson qualified as a Chartered Accountant, then gained a first in Philosophy, Politics and Economics at Balliol College, Oxford, and won the George Webb Medley University Prize in Economics