A study recently commissioned by the Icelandic prime minister, Sigmundur Gunnlaugsson, and written by Frosti Sigurjonsson, displays an accurate analysis of how banks create money and endorses Sovereign Money proposals. But what are people saying about the report? Of course there are criticisms of the report and some of the usual misunderstandings, but most people think it's a proposal that merits serious consideration:
In a recent letter to the FT, 19 prominent economists suggested that there were better ways to boost the Eurozone economy and employment than through QE. Senior lecturer at IFS college, John Hearn, responded to their letter suggesting that they are all wrong, and have “A mistaken estimate of what QE can do”.
It is time for the European Central Bank and eurozone central banks to bypass the financial system and work with governments to inject newly created money directly into the real economy, reads the letter in Financial Times, 26th March 2015, signed by 19 prominent economists:
In his annual budget speech yesterday, Chancellor George Osborne (the UK’s finance minister) declared that UK economy looks like to be in great shape, and that Britain is “walking tall again”. Jobs are being created, growth is on the up, living standards are improving, the national deficit (as a share of national income) has been halved, and ‘economic security’ is being prioritised.