Extended Outline of the New Economics of Investment Credit

  • George T. Edwards

Abstract

The purpose of this chapter is to extend the range of the new economics of investment credit by
  1. (i)

    discussing the interrelationships between business confidence, liquidity and the demand for funds (in this section);

     
  2. (ii)

    demonstrating how longer-term finance improves the rate of return on a project, as seen by a businessman (Section 3.2);

     
  3. (iii)

    postulating two kinds of rational economic behaviour within different economic systems – one involving a virtuous cycle, and one a vicious cycle – depending upon the nature of the relationships between banks and industry within an economy (Section 3.3); and

     
  4. (iv)

    restating briefly the ideas, basic principles and procedures of investment credit economics (in Section 3.4).

     

Keywords

Depression Income Marketing Assure Sewage 

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Notes and References

  1. J. C. Carrington and G. T. Edwards, Financing Industrial Investment (London: Macmillan, 1979).CrossRefGoogle Scholar
  2. J. C. Carrington and G. T. Edwards, Reversing Economic Decline (London: Macmillan, 1981).CrossRefGoogle Scholar
  3. G. T. Edwards, How Economic Growth and Inflation Happen (London: Macmillan, 1984).CrossRefGoogle Scholar
  4. John C. Carrington and George T. Edwards, ‘Where Finance Fails Investment’, Management Today, February 1976, pp. 52–3, 112.Google Scholar
  5. John C. Carrington and George T. Edwards, ‘Britain and Japan - Is the Difference the Cost of Capital?’, The Times, 16 July 1976, p. 19.Google Scholar
  6. John C. Carrington and George T. Edwards, ‘How Finance Fuels Growth’, Management Today, June 1979, pp. 95–6.Google Scholar
  7. George T. Edwards, ‘Could the British follow Japan’s Investment Lead?, The Times.Google Scholar
  8. John C. Carrington and George T. Edwards, ‘Let’s give supply management a try’, Guardian, 24 October 1979, p. 18.Google Scholar
  9. John C. Carrington and George T. Edwards, ‘Keynesians and monetarists - are they really poles apart?’, The Times, 4 December 1979, p. 19.Google Scholar
  10. Harold Lever and George Edwards, ‘How Germany beats Britain’, Sunday Times, 2 November 1980, centre pages and page following.Google Scholar
  11. Harold Lever and George Edwards, ‘How to bank on Britain’, Sunday Times, 9 November 1980, p. 16.Google Scholar
  12. Harold Lever and George Edwards, ‘Put businessmen at the head of the money queue’, Sunday Times, 7 December 1980, p. 19.Google Scholar
  13. George Edwards and John Carrington, ‘This is the time for giving or getting credit where it’s due’, Guardian, 25 February 1981, p. 20.Google Scholar
  14. John C. Carrington and George T. Edwards, ‘A yen for greater honourable debt’, The Accountant, 24 April 1981.Google Scholar
  15. Harold Lever and George Edwards, ‘How the Japanese make money work’, The Times, 31 July 1981, p. 12.Google Scholar
  16. George Edwards, ‘Why listening to a bank’s reply matters’, Guardian, 27 October 1982, p. 16.Google Scholar
  17. George Edwards, ‘Bleeding to death’, The New Democrat, July 1983 p. 26.Google Scholar
  18. George Edwards, ‘Investment Projects and Profitability; the tragic delusion’, Accountancy, February 1985, p. 131.Google Scholar
  19. George Edwards, ‘Mrs Thatcher’s Ghost Dance’, New Statesman, 24 May 1985.Google Scholar
  20. George T. Edwards, ‘Why banks have failed industry’, Your Business, September 1985, pp. 13–14.Google Scholar

NOTES AND REFERENCES TO CHAPTER 3

  1. See Table A.2 of Appendix to Chapter 5, where the savings of Japanese corporate enterprises are calculated.Google Scholar
  2. See The Sunday Times, 16 November 1980, for several complaints by businessmen about bankers.Google Scholar
  3. For the complete text of the letter, see Financial Times, 13 March 1985, p. 13.Google Scholar
  4. Mr Jones proposed a solution in the form of tax-free industrial revenue bonds, as exist in the USA.Google Scholar
  5. Paul A. Samuelson, Economics - An Introductory Analysis (New York: McGraw-Hill, 1967) p. 573.Google Scholar
  6. See Table 5.13 (on page 143) on the short-term nature of UK bank loans.Google Scholar
  7. K. McMahon, speech to bankers at Bristol, November 1982, published in Bank of England quarterly review, December 1982.Google Scholar
  8. Dr Yao-Su Hu, ‘National Attitudes and the Financing of Industry’, PEP, December 1975, p. 54.Google Scholar
  9. See Annex A to Chapter 5.Google Scholar
  10. Dr Yao-Su Hu, ‘National Attitudes and the Financing of Industry’ pp. 45–6.Google Scholar
  11. This quotation is from G. T. Edwards, How Economic Growth and Inflation Happen (London: Macmillan, 1984) p. 163. See also ref. 23 for further sources.CrossRefGoogle Scholar
  12. Ibid., p. 63. See also ref. 23 for further sources.CrossRefGoogle Scholar
  13. Ibid., p. 164. See also ref. 23 for further sources.CrossRefGoogle Scholar
  14. Ibid., p. 164. See also ref. 23 for further sources.CrossRefGoogle Scholar
  15. Ibid., p. 165. See also ref. 23 for further sources.CrossRefGoogle Scholar
  16. Ibid., pp. 165–6. See also ref. 23 for further sources.CrossRefGoogle Scholar
  17. Ibid., p. 166. See also ref. 23 for further sources.CrossRefGoogle Scholar
  18. Ibid., pp. 168–9. See also ref. 23 for further sources.CrossRefGoogle Scholar
  19. See Section 3.2 of this book.Google Scholar
  20. See Section 3.3 of this book.Google Scholar

Copyright information

© George T. Edwards 1987

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  • George T. Edwards

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