Abstract
The purpose of this chapter is to extend the range of the new economics of investment credit by
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(i)
discussing the interrelationships between business confidence, liquidity and the demand for funds (in this section);
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(ii)
demonstrating how longer-term finance improves the rate of return on a project, as seen by a businessman (Section 3.2);
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(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
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(iv)
restating briefly the ideas, basic principles and procedures of investment credit economics (in Section 3.4).
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Notes and References
J. C. Carrington and G. T. Edwards, Financing Industrial Investment (London: Macmillan, 1979).
J. C. Carrington and G. T. Edwards, Reversing Economic Decline (London: Macmillan, 1981).
G. T. Edwards, How Economic Growth and Inflation Happen (London: Macmillan, 1984).
John C. Carrington and George T. Edwards, ‘Where Finance Fails Investment’, Management Today, February 1976, pp. 52–3, 112.
John C. Carrington and George T. Edwards, ‘Britain and Japan - Is the Difference the Cost of Capital?’, The Times, 16 July 1976, p. 19.
John C. Carrington and George T. Edwards, ‘How Finance Fuels Growth’, Management Today, June 1979, pp. 95–6.
George T. Edwards, ‘Could the British follow Japan’s Investment Lead?, The Times.
John C. Carrington and George T. Edwards, ‘Let’s give supply management a try’, Guardian, 24 October 1979, p. 18.
John C. Carrington and George T. Edwards, ‘Keynesians and monetarists - are they really poles apart?’, The Times, 4 December 1979, p. 19.
Harold Lever and George Edwards, ‘How Germany beats Britain’, Sunday Times, 2 November 1980, centre pages and page following.
Harold Lever and George Edwards, ‘How to bank on Britain’, Sunday Times, 9 November 1980, p. 16.
Harold Lever and George Edwards, ‘Put businessmen at the head of the money queue’, Sunday Times, 7 December 1980, p. 19.
George Edwards and John Carrington, ‘This is the time for giving or getting credit where it’s due’, Guardian, 25 February 1981, p. 20.
John C. Carrington and George T. Edwards, ‘A yen for greater honourable debt’, The Accountant, 24 April 1981.
Harold Lever and George Edwards, ‘How the Japanese make money work’, The Times, 31 July 1981, p. 12.
George Edwards, ‘Why listening to a bank’s reply matters’, Guardian, 27 October 1982, p. 16.
George Edwards, ‘Bleeding to death’, The New Democrat, July 1983 p. 26.
George Edwards, ‘Investment Projects and Profitability; the tragic delusion’, Accountancy, February 1985, p. 131.
George Edwards, ‘Mrs Thatcher’s Ghost Dance’, New Statesman, 24 May 1985.
George T. Edwards, ‘Why banks have failed industry’, Your Business, September 1985, pp. 13–14.
NOTES AND REFERENCES TO CHAPTER 3
See Table A.2 of Appendix to Chapter 5, where the savings of Japanese corporate enterprises are calculated.
See The Sunday Times, 16 November 1980, for several complaints by businessmen about bankers.
For the complete text of the letter, see Financial Times, 13 March 1985, p. 13.
Mr Jones proposed a solution in the form of tax-free industrial revenue bonds, as exist in the USA.
Paul A. Samuelson, Economics - An Introductory Analysis (New York: McGraw-Hill, 1967) p. 573.
Ibid.
See Table 5.13 (on page 143) on the short-term nature of UK bank loans.
K. McMahon, speech to bankers at Bristol, November 1982, published in Bank of England quarterly review, December 1982.
Ibid.
Dr Yao-Su Hu, ‘National Attitudes and the Financing of Industry’, PEP, December 1975, p. 54.
See Annex A to Chapter 5.
Dr Yao-Su Hu, ‘National Attitudes and the Financing of Industry’ pp. 45–6.
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.
Ibid., p. 63. See also ref. 23 for further sources.
Ibid., p. 164. See also ref. 23 for further sources.
Ibid., p. 164. See also ref. 23 for further sources.
Ibid., p. 165. See also ref. 23 for further sources.
Ibid., pp. 165–6. See also ref. 23 for further sources.
Ibid., p. 166. See also ref. 23 for further sources.
Ibid., pp. 168–9. See also ref. 23 for further sources.
See Section 3.2 of this book.
See Section 3.3 of this book.
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© 1987 George T. Edwards
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Edwards, G.T. (1987). Extended Outline of the New Economics of Investment Credit. In: The Role of Banks in Economic Development. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-08627-6_3
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