Positive Money advocates a shift away from the current ‘debt-based’ monetary system, in which almost all money is created by commercial banks when they make loans, to a ‘sovereign money’ system in which only the central bank is able to issue new money. In the past, we’ve described sovereign money as ‘debt-free money’, because it is spent into the economy without any household or firm taking on further debt.
Lord Mervyn King, who was Governor of the Bank of England from 2003-2013 and saw the financial crisis play out from the centre of the action, has just released his new book, The End of Alchemy. Our short review of the book is available here. This article explains his proposal for the Bank of England to become a "Pawnbroker for All Seasons".
Lord Mervyn King, who was Governor of the Bank of England from 2003-2013 has just released his new book, The End of Alchemy. The book is not a memoir of his time at the Bank of England; he comments that historians will be able to give a less biased view of his performance in that time, and that most biographies of this kind have been self-serving. Instead, it's his analysis of the problems with the current financial system.
Last December it was announced that the Swiss campaign for monetary reform Modernising Money (MoMo) had collected 111,819 signatures to support a referendum on removing the ability of banks to create money.
Since we released our paper Digital Cash, which proposes that members of the public should be able to hold an electronic version of notes and coins in accounts at the Bank of England, a number of people have raised concerns about the privacy implications.