The Coming Financial Revolution

An analyst suggests that whole new mindsets and definitions are the only way to effect macro-economic change.

- Edward CD Ingram 

New scientific discoveries and engineering innovations that promise to transform our lives are now almost commonplace. But in economics and finance, there has been nothing like that. This is about to change.

The holy grail of financial stability has eluded economists for more than a century. They have tried to achieve it by reducing inflation. It hasn’t worked. Some of the world’s most unsafe economies are to be found at the lowest rates of inflation: in Japan, Europe and the UK, for example.

The new economy cannot be created by the skill set that economists have. Practical, ground-level innovations are needed as well.

The key

A well-designed airframe, which adjusts to the changing conditions, makes piloting a plane easy. It is the same with an economy. At present, we have problems with the rigidity of the financial services for savings, lending, borrowing, pensions and business plans. They do not adjust. All of these problems are being addressed, along with creating a natural state of currency stability. The management side will be simpler. No more worries about drastic interest rate changes.

What will change