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Archive for April 27, 2017

Setting the record straight: Sovereign Money is not Full-Reserve Banking

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The German Bundesbank has recently released an interesting report on the role of banks, non-banks, and the central bank in the money creation process. We have a few issues with the Bundesbank article; however, the majority of the analysis is good. More importantly, the conclusions drawn from the report by news outlets and the blogosphere are misleading.

HowardPerhaps because supporting sovereign money is the "third rail" of an economists career. Why? Because money is power.Bernhard Lietaer asked Paul Krugman, “Why, with all your influence, don’t you tell people how the money system works?Paul replied, “Didn’t they warn you about not touching the ...

last month

HowardSo much of the new money created today goes into speculation instead of the real economy. If new money created by government was spent, lent or gifted into the economy for things people really need and use wouldn't there be little concern about inflation? Inflation occurs due to money going to thin...

last month

Lucian AerisIt looks like the report is only in German, but from the summary it seems that the Bundesbank's economists think FRB wouldn't necessarily provide more stability than better regulations. It appears to me that this is an attempt by the Bundesbank to gently nudge the debate away from the proposal to re...

last month
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Positive Money’s submission to the Treasury Select Committee on the effectiveness and impact of post-2008 UK monetary policy

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The House of Commons Treasury Select Committee is undertaking a landmark inquiry into monetary policy. Our aim is to persuade the committee to acknowledge monetary policy’s bad side-effects and to consider the benefits of fairer and more sustainable monetary policy tools. With this in mind, we coordinated a joint letter from over 40 leading economists, as well as a statement from nearly 10,000 people.

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