© 2013

The Growth Spiral

Money, Energy, and Imagination in the Dynamics of the Market Process

  • Proposes a new approach to understanding the modern economy

  • Presents a model of economic growth incorporating the roles of monetary dynamics and natural resources

  • Written for the specialist and the interested lay reader


Table of contents

  1. Front Matter
    Pages i-xii
  2. Hans Christoph Binswanger
    Pages 1-5
  3. Money and the Market

    1. Front Matter
      Pages 7-7
    2. Hans Christoph Binswanger
      Pages 37-46
  4. Market and Production

    1. Front Matter
      Pages 47-47
    2. Hans Christoph Binswanger
      Pages 75-91
    3. Hans Christoph Binswanger
      Pages 93-105
  5. Money and Production in the Dynamics of the Growth Spiral: Growth Imperative and Growth Impetus

    1. Front Matter
      Pages 107-107
    2. Hans Christoph Binswanger
      Pages 109-113
    3. Hans Christoph Binswanger
      Pages 115-120
    4. Hans Christoph Binswanger
      Pages 129-145
    5. Hans Christoph Binswanger
      Pages 153-157
  6. Back Matter
    Pages 159-165

About this book


This book develops a new theory of the modern economy. Conventional economic theory is (still) based on an essentially static notion of equilibrium. In contrast, this book offers an analysis of the economic process based on a truly dynamic approach. It understands modern economic activity as manifesting itself in a growth spiral. There are two main drivers of the dynamics of this spiral: steady money creation in the banking system, on the one hand; and the continuous inflow of energy and raw materials through the exploitation of natural resources, on the other. Both driving forces are generally neglected by the conventional theory. Understanding their role is absolutely essential for preventing our economy from being more and more exposed to financial and ecological crises. This book offers important insights about the functioning of the modern economy and addresses the specialist as well as the interested lay reader.


Economic Growth History of Economic Thought Macroeconomics Money and Credit Sustainability

Authors and affiliations

  1. 1., Institute for EconomyUniversity of St.GallenSt. GallenSwitzerland

About the authors

Hans-Christoph Binswanger is a Professor Emeritus of economics at the University of St. Gallen, Switzerland, where he was also Head of the Institute of Economics and Director of the Institute for Economy and the Environment. He holds a phd and a habilitation from University of Zurich, Switzerland. He has published extensively in books and journals on environmental and resource economics as well as monetary economics, and has been awarded several research and policy prizes.

Bibliographic information

Industry Sectors
Finance, Business & Banking


From the reviews:


“The subtitle of the book encapsulates the author’s ambitious research agenda combining growth theory, monetary policy, environmental economics, economy history, and economic dynamics to build ‘the foundations for a new theory of the modern economy.’ … This book is intended to appeal to a broad audience of academics, policymakers, and lay readers.” (Jesse Perla, Journal of Economic Literature, Vol. LI (4), December, 2013)