Printing money to fund deficit is the fastest way to raise rates and there are no technical reasons for rejecting this, only the fear of breaking a taboo, writes Lord Adair Turner in Financial Times, 10th November 2014.
MPs lack basic knowledge about the fundamentals of money, leaving them ill-equipped to understand the impending dangers of another house price boom or a second credit bubble, according to an exclusive Dods Monitoring poll commissioned by Positive Money, the campaign body calling for fundamental reform of our money and banking system.
A couple of months ago, Positive Money's proposals to reform the creation of money were featured by Martin Wolf (the chief economics commentator at the Financial Times). In an article entitled "Why I disagree with Martin Wolf and Positive Money", veteran campaigner and economist Ann Pettifor responded that the proposal is 'deeply flawed', 'outlandish', and would lead to "a shortage of money, high unemployment and low economic activity".
Every 3 months the Bank of England publishes it's flagship 'Quarterly Bulletin', which explains more about how it works, how it sees its role in the monetary system, and its current thinking on central banking and financial markets.
Lord Turner, former chairman of the Financial Services Authority, is moving ever closer to advocating that the state should issue money and spend it into the economy, in the public interest.