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Ben Dyson (Positive Money)

Ben is Positive Money's Head of Research. He founded Positive Money in 2010 and is a co-author of Modernising Money. Ben's research focuses on potential reforms better forms of monetary policy, structural reforms to the banking system, and the potential for technology to disrupt the payment and banking systems.

Simon BazleyHi James, A couple of points. I disagree that banks create anything. I believe that we, the people, create money. I think that banks actually launder the entire principal into their unwarranted possession when they issue a purported loan. I say purported as no loan actually ever transpires as w...

2 days ago

James MurraySimon,You may know that any amount of 'consideration' is sufficient to form a contract.So that if I offer to sell my house to you for a bar of chocolate, then that is quite sufficient to be an enforceable contract. (provided it is writing, signed etc).The point is that the bank may 'create' funds by...

3 days ago

Simon BazleySo, no suprise really, but after a week there is still no response from Ben (or anyone else at PM) to what is in reality a very simple question. You would think that PM would want to refute such a claim that the 'solutions' of an organisation that purports to be about economic justice is in fact bu...

2 weeks ago
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PJMThe "very non-trivial admission" by "the Bank of England to publicly concede that banks create money and point out that mainstream textbooks are generally wrong on this fundamental point" is definitely NOT "the first time in history".The REPORT OF THE NEW ZEALAND ROYAL COMMISSION ON MONETARY, BANKIN...

2 weeks ago

Marco SabaThis is the unaddressed point: Seigniorage: The Honest Government's Guide to the Revenue from the Creation of Money http://leconomistamascherato.b......

July 2016
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Bank of England: Digital Cash – the end of monetary policy as we know it?

bank of england digital currency

Last week the Bank of England released a key paper that analyses the 'macroeconomics of central bank issued digital currencies'. The paper essentially asks what would happen if people could hold money electronically at the central bank, instead of having to use bank deposits (created by commercial banks). We wrote about it briefly last week but we're still working through the fine details of the 69-page mathematical model to figure out the implications for our work. In the meantime, the Bank of England's staff blog has just released a much more accessible discussion of the issues:

WilliamAnd...hard cash in the hand cannot be tracked so readily...

2 weeks ago

WilliamEntirley true...but...'hard cash' in your hand cannot confiscated when convenient...

2 weeks ago

Vince RichardsonOK I ve no objection to that,far as I am aware that is what we all want.It has to be open and honest so everyone can see what is going on and where and how that money is created.Well in simple terms anyhow...

July 2016
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Our response to critics in the Cambridge Journal of Economics

Cambridge Journal Response

The Cambridge Journal of Economics (probably the leading journal of Post-Keynesian economics) has published an entire special issue on "Cranks and brave heretics: Rethinking money and banking after the Great Financial Crisis", inviting a range of academics to comment on proposals to stop banks creating money (amongst other ideas for monetary reform).

joebhedSorry, gang, stopping banks from creating money would indeed cause the economy to crash - if we leave it to these P-Ks to implement. But, rather, a monetary policy administered by a pubic authority empowered to create and issue the money would raise instead that valid, age-old stickler among public ...

July 2016

Vince Richardson""We argue that the reality of bank lending and firm investment is a challenge to this assumption and ignores the fact that the central bank can always create money to finance lending to the real economy"Not sure about this,surely we are about the state spending into the real economy?This lending bu...

July 2016

ckmurrayHave you read about Australia's experience with the Commonwealth Bank which was a government owned central bank + retail bank in the early 1900s? https://en.wikipedia.org/wiki/...Seems very relevant to the issue of private vs public created money....

July 2016
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Bank of England releases key paper on digital cash and blockchain

Screenshot 2016-07-19 13.36.01

The Bank of England has just released its most significant paper yet. Macroeconomics of central bank issued digital currencies, by John Barrdear and Michael Kumhof, discusses the consequences of the central bank making a digital form of cash available to the general public, so that they are no longer forced to use bank deposits to make electronic payments:

Dwain DibleyDeny much?...

last month

Gregory SchoenmakersProject much?...

last month

Dwain DibleyThat's funny Gregory, you allowing your cognitive dissonance to get the better of you. Well, don't let facts bother you, you are perfectly free to continue to believe as you'e been told to believe....

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