Where does money come from and how does it work? National accounts provide a mine of data for understanding the productive capacity of an economy and how sectors of the economy interact. Simon Roberts takes us through these systemic dependencies by introducing a novel flow diagram. The diagram reveals the connection between economic output and investment back into infrastructure. Banking plays a key role in where this investment is directed. Simon contends that the high investment into the service sector must be maintained to keep unemployment down. He goes on to propose that improving energy efficiency and renewable energy, for instance, need diversion of more investment.


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