Between Debt and the Devil

Between Debt and the Devil examines how debt and credit creation by banks shape modern economies and financial systems. Former Financial Services Authority chairman Adair Turner challenges conventional economic beliefs about money, debt, and banking. Turner traces the historical development of credit and banking while analyzing their roles in economic crises and instability. The book presents evidence that excessive private debt causes major financial problems and explores alternatives to debt-dependent growth. The author outlines potential policy reforms and new approaches to monetary systems that could help create more sustainable economies. His proposals include direct government money creation and stricter regulation of private credit. This work raises fundamental questions about the nature of money and credit in capitalist societies, suggesting that long-held assumptions about free market finance require serious reconsideration. The analysis connects monetary theory to broader issues of economic inequality and environmental sustainability.

Readers describe this as a technical but accessible analysis of monetary policy and private debt. Most reviews emphasize Turner's clear explanations of complex financial concepts and his unique perspective as a former financial regulator. Positives from readers: - Clear breakdown of how private credit creation works - Strong historical examples and data - Practical policy recommendations - Balanced view that avoids extreme positions Common criticisms: - Dense academic writing style in some sections - Too much focus on UK/European examples - Some readers wanted more detailed solutions - Repetitive points in later chapters Ratings: Goodreads: 4.17/5 (89 ratings) Amazon: 4.4/5 (51 ratings) Sample review quote: "Turner explains the mechanics of money creation better than any other book I've read, but the policy discussion meanders" - Goodreads reviewer Multiple readers noted this works better for those with some economics background rather than complete beginners.

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💡 Lord Adair Turner chaired the UK Financial Services Authority during the 2008 financial crisis, giving him a front-row seat to one of history's largest financial meltdowns. 🏦 The book challenges the common belief that banks simply act as intermediaries between savers and borrowers, explaining how they actually create money through the act of lending. 📈 Private debt levels in many advanced economies have risen from about 50% of GDP in 1950 to more than 170% by 2007, a trend the book identifies as potentially destabilizing. 🌍 Turner proposes radical solutions including "monetary financing" - allowing central banks to create money to fund government spending - a concept traditionally considered taboo in economics. 🏛️ The book's title references a quote from the 19th-century banking expert Henry Dunning Macleod: "Every country finds itself between the devil of the banking system and the deep blue sea of government-issued money."