Between Debt and the Devil Quotes

“If all markets could be made perfect, and all human beings made rational, then more financial contracts, more trading, more liquidity, and more price discovery would indeed bring us closer to an efficient competitive equilibrium in which all resources would be allocated as efficiently as possible. But in the real world of inherently imperfect markets, imperfect information, and of human beings part rational and part not, market completion and increased liquidity can have negative effects.”
― Adair Turner, Between Debt and the Devil: Money, Credit, and Fixing Global Finance

“Finally I aim to identify why mainstream modern economics failed to see the crisis coming, and why it so confidently asserted that increasing financial activity had made the world a safer place. To do that, we need to return to the insights about credit, money, and banks on which an earlier generation of economists focused, but which modern economics has largely ignored.”
― Adair Turner, Between Debt and the Devil: Money, Credit, and Fixing Global Finance

“It is therefore possible, though by no means certain, that we face not merely a severe debt overhang problem produced by excessive credit growth but also an underlying structural deficiency of nominal demand. If”
― Adair Turner, Between Debt and the Devil: Money, Credit, and Fixing Global Finance

“The fundamental problem is that modern financial systems left to themselves inevitably create debt in excessive quantities, and in particular debt that does not fund new capital investment but rather the purchase of already existing assets, above all real estate. It is that debt creation which drives booms and financial busts: and it is the debt overhang left over by the boom that explains why recovery from the 2007–2008 financial crisis has been so anemic.”
― Adair Turner, Between Debt and the Devil: Money, Credit, and Fixing Global Finance