We consider that conventional or ‘mainstream’ economic theory has proved of almost no relevance to the ongoing and chronic failure of the global economy and to the gravest threat facing us all: climate change.
Policy Research in Macroeconomics (PRIME) is a network of macroeconomists, political economists and professionals from related disciplines who seek to engage with a diverse audience in order to de-mystify economic theories, policies and ideas.
We highlight the glaring failure of mainstream economics to challenge the finance sector’s role – explained in part by the profession’s blind spot for the role of credit in the economy.
We reject outright the method of drawing macroeconomic conclusions from microeconomic reasoning.
Fundamental to our approach is the restoration of ethics in relation to money, credit and the rate of interest.
In brief our aims are to:
- Develop and frame macroeconomic theories, applications and solutions to the severe economic, social and ecological problems of the world.
- Restore the use of macroeconomic theory to its proper place, i.e. the analysis of macroeconomic conditions.
- Promote policies for greater equality, full and decently-paid employment, and ecologically sustainable economic activity.
- Promote understanding of the nature of credit and its role in determining macroeconomic outcomes.
- Promote policies for a new global financial architecture and national and international monetary systems that are based on international justice, equity and stability.
PRIME’s co-founders – whose backgrounds and expertise span academia, government economics and statistics, the international financial system and sovereign debt, the City, politics and advocacy – included Professor Victoria Chick, Ann Pettifor, Jeremy Smith and Geoff Tily.
PRIME is a company limited by guarantee, set up in 2010. Its company directors are Ann Pettifor and Jeremy Smith.