The inflation report from 11th May and newly released data provide further evidence that the UK economy is increasingly unbalanced. The Bank of England has warned that wages are stagnating, while everyday prices are rising, leading to a higher cost of living.
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.
Positive Money’s submission to the Treasury Select Committee on the effectiveness and impact of post-2008 UK monetary policy
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.
Yesterday, the United Nations held a high-level conference on how to finance the Sustainable Development Goals (SDGs). We have therefore come up with some rough ideas on how central banks could help partially fund some of these goals.
Summary Ann Pettifor’s new book, The Production of Money, is an excellent contribution to the growing body of thought exposing mainstream, neoclassical economics’ poor understanding of money, banking, and finance, and how its thinking has led to a financial system that we serve, rather than one that serves us.