In a significant breakthrough, the Bank of England (BoE) has just announced it will be adopting a policy change that Positive Money has been arguing for over the last 2 years. The BoE will finally allow non-bank ‘payment service providers’ (PSPs) to hold accounts at the BoE, so that they can compete with existing banks to provide current (checking) accounts. This will break the stranglehold that large UK banks have over the provision of payment accounts - and represents a step towards further changes that would limit the ability of banks to create money.
BIS Warns of a Global Debt Crisis and a Lack of Policy Response Options: Time to Update the BoE’s Policy Toolkit?
The Bank for International Settlement (BIS) has just warned that the global economy faces a “gathering storm” brought on by too much borrowing. With high levels of private debt relative to income, increasing financial volatility and poor prospects for growth there are growing concerns about the lack of policy response options available to central banks.
In this interview on Dialect Radio we hear what's wrong with our money system and how to fix it from Mark Kerridge of Bristol Positive Money local group. The power to create money over the years has been privatised so it serves private, not public interests and quite self-evidently this has to change.
Huge chunks of money would suddenly drop out of circulation into thin air and the consequences would be catastrophic: cash machines and debit cards would all stop working, threatening the entire financial system with collapse, reads the article written by Fran Boait in the Independent, 7th Feb 2016.
Fran Boait, Executive Director of Positive Money and economics commentator Professor John Weeks discuss whether it's time to rethink the concept of Quantitative Easing on Share Radio Investment Perspectives programme.