After The Crash
Designing a Depression-Free Economy
By Mason Gaffney
This collection of selected works by Mason Gaffney is the latest volume in the series Studies in Economic Reform and Social Justice from The American Journal of Economics and Sociology. Edited and with an introduction by Clifford W. Cobb, the essays in this volume go behind the headlines and the superficial descriptions of current events to offer an in-depth look at the causes of recent events through the lens of insights gleaned from patterns that have persisted through hundreds of years.
Gaffney provides a distinctive framework for analyzing macroeconomic issues, which can offer a useful counterpoint to Keynesian, monetarism, rational expectations theory, and general equilibrium analysis. It reviews sympathetically the function of banks and deposit creation and warns against banks’ monetizing speculative and volatile land values by using them as collateral. Finally, this book criticizes orthodox economists for conflating land and capital in their thinking and their theories, and trivializing the value of land in their data sources.