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1、Preliminary,pleasedonotquote–commentswelcome-30thSeptember2009THEFINANCIALCRISIS,PRIVATEANDPUBLICDEBT-Contrastingtheapproachesofeconomicsandtheology-PaperpreparedfortheEvangelicalAllianceStudyGroupon“LifeAfterDebt”by1EPhilipDavisPemburyBaptistChurch,NIESR,BrunelUniversity
2、1AssociatePastoratPemburyBaptistChurch,Kent,VisitingFellowattheNationalInstituteofEconomicandSocialResearch,andProfessorAssociateatBrunelUniversity.Email:e_philip_davis@msn.com.IthankPhilipBooth,PaulMillsandmembersoftheadvisorygroupforhelpfulsuggestions.2IntroductionThecu
3、rrentfinancialcrisisiswidelyseenasthemostseriousandfar-reachingeconomiceventsincetheGreatDepressionofthe1930s.AndyetthevolumeofanalysisfromaChristian,asopposedtoaneconomicorfinancialperspective,hasbeenrelativelysmallto2date.Thereisariskthatthechurchwilllackacriticalvoicei
4、ncurrentdebates,andhencebeseenasirrelevant.Thiswouldbeatravesty,sinceinfacttheBiblicalpointofviewhasagreatdealofdistinctiveanalysistocontribute,especiallywhensetalongsidetherulingparadigmoftoday,thatofeconomics.Inthiscontext,thispaperhasthreeaims.First,itseekstoprovidedis
5、tinctiveChristian-Economicsanalyses,derivingpolicyimplicationsfromabiblicalpointofview,informedbyeconomicthought–givingthechurchadistinctivevoiceinatimeofeconomiccrisis.Second,itaimstoprovidematerialforministersseekingtounderstandandinterpretthecrisistotheircongregations.
6、Andthird,itseekstohighlightinapropheticmannerradicalChristiansolutionstosomeofthecurrentdifficulties,whiletherearestillopenearsandbeforevestedinterestsreassertthemselves.Thepaperfocusesonthreekeyaspectsofthecrisis,understandingtheroleandincentivesofthebankers,theplightofh
7、ouseholdswithindebtedness,andthemassiveriseinpublicdebt.Thepaperisstructuredasfollows:Inafirstsectionweoutlinetheeventsofthefinancialcrisisfromadescriptivestance,albeitinformedbyfinancialeconomics.Thisiscomplementedbyasecondsectionthatcontraststheviewsofhumanitygivenbyeco
8、nomicsandChristiantheology.Withtheseasbackground,weproceedtothreemainsectionsontheroleofbanks,ho