tax haven offshore financial centre of Guernsey, presents his paper entitled ‘The Folklore of Finance’.
“Those who do not work within the contracting world of financial services perceive that most transactions are based on other transactions, a sort of pyramid of transactions that occur in an artificial world, a fantasy world.”
Non-subscribers to the journal can purchase the paper for £26 (plus taxes, if applicable). Or, if you prefer you can read a different paper entitled ‘The Folklore of Finance’ from the Feb 24th edition of the New Times Melbourne, 1939, at no charge.
“The effect of the peculiar folklore of 1938 was to encourage the type of organisation known as banking and discourage profoundly the types known as industry and government. It also discouraged the individual citizen who, incorrigibly materialistic, clamoured for a roof over his head, clothes on his back, and food in his stomach. Under the protection of this hypnotic folklore the profits of American banking were remarkable, and in remarkable contrast to the losses of industry, the deficits of government, and the impecunious condition of the citizens.”
Other possible further readings include:
• Eastern Economic Journal, Vol. 31, No. 3, Winter 2005, AGGREGATE PRODUCTION FUNCTIONS – A PERVASIVE, BUT UNPERSUASIVE, FAIRYTALE by Franklin M. Fisher, Jane Berkowitz Carlton and Dennis William Carlton Professor of Microeconomics Emeritus Massachusetts Institute of Technology.
• For the Davos bears, America’s ‘Goldilocks’ recovery is a fairytale by William Keegan, The Observer, Sunday 4 February 2007
• FAILURE OF CAPITALISM? THE FAIRY TALE KNOWN AS NEW DEAL Review of Economic Studies & Research, Virgil Madgearu; Jun2013, Vol. 6 Issue 1, p187