Between debt and the devil : money, credit, and fixing global finance : with a new afterword by the author

Why our addiction to debt caused the global financial crisis and is the root of our financial woes Adair Turner became chairman of Britain's Financial Services Authority just as the global financial crisis struck in 2008, and he played a leading role in redesigning global financial regulation. In this eye-opening book, he sets the record straight about what really caused the crisis. It didn't happen because banks are too big to fail—our addiction to private debt is to blame. Between Debt and the Devil challenges the belief that we need credit growth to fuel economic growth, and that rising debt is okay as long as inflation remains low. In fact, most credit is not needed for economic growth—but it drives real estate booms and busts and leads to financial crisis and depression. Turner explains why public policy needs to manage the growth and allocation of credit creation, and why debt needs to be taxed as a form of economic pollution. Banks need far more capital, real estate lending must be restricted, and we need to tackle inequality and mitigate the relentless rise of real estate prices. Turner also debunks the big myth about fiat money—the erroneous notion that printing money will lead to harmful inflation. To escape the mess created by past policy errors, we sometimes need to monetize government debt and finance fiscal deficits with central-bank money. Between Debt and the Devil shows why we need to reject the assumptions that private credit is essential to growth and fiat money is inevitably dangerous. Each has its advantages, and each creates risks that public policy must consciously balance. Adair Turner Became Chairman Of Britain's Financial Services Authority Just As The Global Financial Crisis Struck In 2008, And He Played A Leading Role In Redesigning Global Financial Regulation. In This Eye-opening Book, He Sets The Record Straight About What Really Caused The Crisis. It Didn't Happen Because Banks Are Too Big To Fail--our Addiction To Private Debt Is To Blame. Between Debt And The Devil Challenges The Belief That We Need Credit Growth To Fuel Economic Growth, And That Rising Debt Is Okay As Long As Inflation Remains Low. In Fact, Most Credit Is Not Needed For Economic Growth--but It Drives Real Estate Booms And Busts And Leads To Financial Crisis And Depression. Turner Explains Why Public Policy Needs To Manage The Growth And Allocation Of Credit Creation, And Why Debt Needs To Be Taxed As A Form Of Economic Pollution. Banks Need Far More Capital, Real Estate Lending Must Be Restricted, And We Need To Tackle Inequality And Mitigate The Relentless Rise Of Real Estate Prices. Turner Also Debunks The Big Myth About Fiat Money--the Erroneous Notion That Printing Money Will Lead To Harmful Inflation. To Escape The Mess Created By Past Policy Errors, We Sometimes Need To Monetize Government Debt And Finance Fiscal Deficits With Central-bank Money. Between Debt And The Devil Shows Why We Need To Reject The Assumption That Private Credit Is Essential To Growth And Fiat Money Is Inevitably Dangerous. Each Has Its Advantages, And Each Creates Risks That Public Policy Must Consciously Balance. -- Swollen Finance. The Utopia Of Finance For All ; Inefficient Financial Markets -- Dangerous Debt. Debt, Banks, And The Money They Create ; Too Much Of The Wrong Sort Of Debt ; Caught In The Debt Overhang Trap ; Liberalization, Innovation, And The Credit Cycle On Steroids ; Speculstion, Inequality, And Unnecessary Credit -- Debt, Development, And Capital Flows. Debt And Development : The Merits And Dangers Of Financial Repression ; Too Much Of The Wrong Sort Of Capital Flow : Global And Eurozone Delusions -- Fixing The System. Irrelevant Bankers In An Unstable System ; Fixing Fundamentals ; Abolishing Banks, Taxing Debt Pollution, And Encouraging Equity ; Managing The Quantity And Mix Of Debt -- Escaping The Debt Overhang. Monetary Finance - Breaking The Taboo ; Between Debt And The Devil - A Choice Of Dangers ; The Queen's Question And The Fatal Conceit. Adair Turner. Includes Bibliographical References And Index. "Adair Turner became chairman of Britain's Financial Services Authority just as the global financial crisis struck in 2008, and he played a leading role in redesigning global financial regulation. In this eye-opening book, he sets the record straight about what really caused the crisis. It didn't happen because banks are too big to fail--our addiction to private debt is to blame. Between Debt and the Devil challenges the belief that we need credit growth to fuel economic growth, and that rising debt is okay as long as inflation remains low. In fact, most credit is not needed for economic growth--but it drives real estate booms and busts and leads to financial crisis and depression. Turner explains why public policy needs to manage the growth and allocation of credit creation, and why debt needs to be taxed as a form of economic pollution. Banks need far more capital, real estate lending must be restricted, and we need to tackle inequality and mitigate the relentless rise of real estate prices. Turner also debunks the big myth about fiat money--the erroneous notion that printing money will lead to harmful inflation. To escape the mess created by past policy errors, we sometimes need to monetize government debt and finance fiscal deficits with central-bank money. Between Debt and the Devil shows why we need to reject the assumption that private credit is essential to growth and fiat money is inevitably dangerous. Each has its advantages, and each creates risks that public policy must consciously balance." (source : quatrième de couverture) Part I. Swollen finance Part II. Dangerous debt Part III. Debt, development, and capital flows Part IV. Fixing the system Part V. Excaping the debt overhang. 1. The Utopia of finance for all 2. Inefficient financial markets 3. Debt, banks, and the money they create 4. Too much of the wrong sort of debt 5. Caught in the debt overhang trap 6. Liberalization, innovation, and the credit cycle on steroids 7. Speculation, inequality, and unnecessary credit 8. Debt and development: the merits and dangers of financial repression 9. Too much of the wrong sort of capital flow: global and eurozone delusions 10. Irrelevant bankers in an unstable system 11. Fixing fundamentals 12. Abolishing banks, taxing debt pollution, and encouraging equity 13. Managing the quantity and mix of debt 14. Monetary finance breaking the taboo 15. Between debt and the devil a choice of dangers Epilogue: the queen's question and the fatal conceit. Adair Turner became chairman of Britain's Financial Services Authority just as the global financial crisis struck in 2008, and he played a leading role in redesigning global financial regulation. In this eye-opening book, he sets the record straight about what really caused the crisis. It didn't happen because banks are too big to fail--our addiction to private debt is to blame. __Between Debt and the Devil__ shows why we need to reject the assumptions that private credit is essential to growth and fiat money is inevitably dangerous. Each has its advantages, and each creates risks that public policy must consciously balance. In this authoritative book, Adair Turner thoroughly takes apart the flawed assumptions that contributed to the 2008 crisis, and he details the realities of modern economies and financial sectors. Turner explains how and why economies have shifted, and why society's attitudes toward borrowing, banks and money creation need to change in response. Otherwise, he writes, the world will remain mired in growing debt and recurring boom-and-bust cycles. Turner's work is a bold challenge to the status quo and a carefully argued wake-up call