Mariana Mazzucato - The Value of Everything - Making and Taking in the Global Economy

31. SNA 2008, p. 99.

32. The recommended method for imputing rents is given thus: ‘Households that own the dwellings they occupy are formally treated as owners of unincorporated enterprises that produce housing services consumed by those same households. When well-organized markets for rented housing exist, the output of own-account housing services can be valued using the prices of the same kinds of services sold on the market in line with the general valuation rules adopted for goods or services produced on own account. In other words, the output of the housing services produced by owner occupiers is valued at the estimated rental that a tenant would pay for the same accommodation, taking into account factors such as location, neighborhood amenities, etc. as well as the size and quality of the dwelling itself. The same figure is recorded under household final consumption expenditures. In many instances, no well-organized markets exist and other means of estimating the value of housing services must be developed.’ (SNA 2008, p. 109.)

33. For the US, this can be seen by comparing growth rates of GDP and of imputed rental of owner-occupied housing (Bureau of Economic Analysis, US Department of Commerce, ‘Imputed rental of owner-occupied housing’, table 7.12, line 154, last revised on 3 August 2016; accessed 13 March 2017).

34. SNA 2008, p. 48.

35. https://www.istat.it/it/files/2015/12/Economia-non-osservata.pdf?title=Economia+non+osservata+-+04%2Fdic%2F2015+-+Testo+integrale+con+nota+metodologica.pdf

36. S. Merler and P. Hüttl, ‘Welcome to the dark side: GDP revision and the non-observed economy’, Bruegel, 2 March 2015: http://bruegel.org/2015/03/welcome-to-the-dark-side-gdp-revision-and-the-non-observed-economy/

37. SNA 2008, p. 150.

38. Quoted in P. A. Samuelson and W. D. Nordhaus, Economics , 13th edn (New York: McGraw-Hill, 1989), p. 75.

4. FINANCE: A COLOSSUS IS BORN

1. R. Sahay, M. Cihak, P. N’Diaye, A. Barajas, R. Bi, D. Ayala, Y. Gao, A. Kyobe, L. Nguyen, C. Saborowski, K. Svirydzenka and S. Reza Yousefi, ‘Rethinking financial deepening: Stability and growth in emerging markets’, IMF Staff Discussion Note SDN/15/08 (May 2015): https://www.imf.org/external/pubs/ft/sdn/2015/sdn1508.pdf

2. C. W. Park and M. Pincus, ‘Internal versus external equity funding sources and early response coefficients’, Review of Quantitative Finance and Accounting , 16(1) (2001), pp. 33–52: https://doi.org/10.1023/A:1008336323282; T. Hogan and E. Hutson, ‘Capital structure in new technology-based firms: Evidence from the Irish software sector Centre’, Financial Markets Working Paper series WP-04-19 2004, University College Dublin School of Business, Centre for Financial Markets.

3. C. Furse, ‘Taking the long view: How market-based finance can support stability’, speech at Chartered Institute for Securities and Investment, 28 March 2014: http://www.bankofengland.co.uk/publications/Documents/speeches/2014/speech718.pdf; Z. Moradi, M. Mirzaeenejad and G. Geraeenejad, ‘Effect of bank-based or market-based financial systems on income distribution in selected countries’, Procedia Economics and Finance , 36 (2016), pp. 510–21; B-S. Lee, ‘Bank-based and market-based financial systems: Time-series evidence’, Pacific-Basin Finance Journal , 20(2) (2012), pp. 173–97.

4. R. Bacon and W. Eltis, Britain’s Economic Problem Revisited (Basingstoke: Macmillan, 1996), pp. 15–33.

5. H. Oliver Horne, A History of Savings Banks (Oxford: University Press, 1947), pp. 118–67.

6. M. da Rin and T. Hellmann, ‘Banks as catalysts for industrialization’, William Davidson Working Paper 443 (October 2001): https://deepblue.lib.umich.edu/bitstream/handle/2027.42/39827/wp443.pdf?sequence=3

7. J. Schumpeter, ‘The theory of economic development’, Harvard Economic Studies , 46 (1934); A. Gerschenkron, Economic Backwardness in Historical Perspective (Cambridge, MA: Belknap Press, 1962).

8. L. Akritidis, ‘Improving the measurement of banking services in the UK national accounts’, Economic & Labour Market Review , 1(5) (2007), pp. 29–37.

9. L. Fioramonti, Gross Domestic Problem (London: Zed Books, 2013), p. 111.

10. B. Sturgess, ‘Are estimates of the economic contribution of financial services reliable?’, World Economics 18(1) (2017), pp. 17–32.

11. The seller hopes that by the time he or she has to deliver the securities to the buyer the price will have fallen. The securities can then be bought at the new (lower) price and sold to the buyer at the contracted old (higher) price. The shorter pockets the difference between the two prices.

12. J. Allen and M. Pryke, ‘Financialising household water: Thames Water, MEIF and “ring-fenced” politics’, Cambridge Journal of Regions, Economy & Society , 6 (2013), pp. 419–39.

13. L. A. Stout, ‘Why the law hates speculators: Regulation and private ordering in the market for OTC derivatives’, Duke Law Journal , 48(4) (1999), pp. 701–86.

14. S. Strange, International Monetary Relations (Oxford: University Press, 1976), p. 180.

15. B. Eichengreen, The European Economy since 1945: Coordinated Capitalism and Beyond (Princeton, NJ: University Press, 2008), p. 76.

16. C. A. E. Goodhart, ‘Competition and credit control’, Financial Markets Group London School of Economics, special paper 229 (2014).

17. N. Ruggles and R. Ruggles, ‘Household and enterprise saving and capital formation in the United States: A market transactions view’, Review of Income and Wealth , 38(2) (June 1992), pp. 119–63.

18. M. McLeay, A. Radia and R. Thomas, ‘Money creation in the modern economy’, Bank of England Quarterly Bulletin , Q1 2014, pp. 1–14.

19. Competition Commission, ‘The supply of banking services by clearing banks to small and medium-sized enterprises: A report on the supply of banking services by clearing banks to small and medium-sized enterprises within the UK’ (2002), summary online at: http://webarchive.nationalarchives.gov.uk/20111202184328/http://www.competition-commission.org.uk/rep_pub/reports/2002/462banks.htm

20. B. Christophers, Banking Across Boundaries (Chichester: Wiley-Blackwell, 2013), p. 38.

21. Eichengreen, The European Economy since 1945 .

22. J. M. Keynes, The General Theory of Employment, Interest and Money (London: Macmillan, 1936), p. 59.

23. J. M. Keynes, ‘Evidence to the Royal Commission on lotteries and betting’ (1932), p. 400, quoted in Barba and de Vivo, ‘An “unproductive labour” view of finance’, p. 1492: http://doi.org/doi:10.1093/cje/bes048

24. Ibid.

25. Keynes, General Theory of Employment , p. 159.

26. H. P. Minsky, ‘The Financial instability hypothesis: An interpretation of Keynes and an alternative to “standard” theory” ’, Challenge , 20(1) (1977), pp. 20–27.

27. L. Randall Wray and Y. Nersisyan, ‘Understanding Money and Macroeconomic Policy’, in M. Jacobs and M. Mazzucato (eds), Rethinking Capitalism: Economics and Policy for Sustainable and Inclusive Growth (Chichester: Wiley-Blackwell, 2016).

28. H. P. Minsky, Stabilizing an Unstable Economy (New Haven and London: Yale University Press, 1986), p. 369.

29. J. M. Keynes, ‘Proposals for an International Clearing Union’, April 1943, reprinted in J. K. Horsefield, The International Monetary Fund 1945 – 1965: Twenty Years of International Monetary Cooperation (Washington, DC: IMF, 1969), pp. 19–36.

30. A. Turner, Economics After the Crisis: Objectives and Means (Boston, MA: MIT Press, 2013), p. 18.

31. E. Fama, ‘Efficient capital markets: A review of theory and empirical work’, Journal of Finance , 25(2) (1970).