Between Debt and the Devil

This is a very well written economics book . Adair Turner became chairman of Britains FSA just as the ’08 crisis hit, and has played a leading role in Britains subsequent financial regulation, moreover he is an extremely well read academic and provides the reader with lots of very well referenced arguments. The main theme of this book is to challenge the belief that we need credit growth to fuel economic growth and that rising debt is ok so long as inflation remains low (seems obvious right?). Adair argues that when credit growth is left to free market forces this can lead to driving real estate booms, and over leverage, which ultimately lead to busts. Tuner also debunks the myth that fiat money always has a harmful inflationary side, and he argues that sometimes monetising government debt, to finance fiscal deficits with central bank money is what is indeed needed. This is a well balanced book and Adair strikes a fine balance between the policies of private credit growth and monetary stimulus.


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