22nd May 2012: Yesterday evening at the European Parliament in Strasbourg, Andrew Brons spoke during a debate on 'Growth without Inflation'.
"Trying to rescue a country from debt by driving its population into austerity and unemployment is not so different, in principle, from the British nineteenth century policy of locking up the indebted in debtors' prisons.
"However, borrowing yet more to increase aggregate demand is hardly going to reduce debt.
"Quantitative easing will increase aggregate demand without increasing debt but, if not matched by increased production, it does tend to be inflationary.
"We must work from the principle that, "What is physically possible must be financially possible".
"If we have infrastructure work that needs to be carried out and building workers who are unemployed, the latter must be employed to carry out the former.
"Can inflation be avoided? Yes, if full payment for the work is delayed until the project is complete, is in use and has added to our stock of goods and services.
"Created money is not inflationary if it is matched in quantity and in time by an increase in goods and services."