Options for Banking Reform

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Jonathan Peretz ChancePerhaps you don't quite understand my point. If an allegedly "public" (government) entity issues all the legal-tender (good-for-taxes) money rather than an obviously private (corporate) entity, and the currency unit is still not transparently and scientifically defined, have you not simply exchange...

4 weeks ago

Richard EastmanThe corporations make money lending the entire money supply to the country at interest. The government provides at next to no cost a money supply for free and distributes it, perhaps by a new-money dividend, to the citizens so they, as consumers, can spend them into circulation. With a permanent m...

last month

Richard EastmanIn an economy where all of the money is deposits that are co-created with an obligation to pay back to the bank the full loan amount plus interest, the money supply will automatically tend, not to zero (which would happen if just principal had to be repaid) but actually to the negative (with all mo...

last month
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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...

September 2016

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

September 2016

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).

Graham BarnesThe PDF has been moved and the online access is no longer free....

February 2017

joebhedTom,You can investigate The Muscle Shoals Project : Ford and Edison for one of the clearest understandings of the dynamics of debt-based money coupled with compounding interest.The people, in their monetary economy, are paying interest on every dollar that was ever created to support the national ex...

December 2016

joebhedTom,Yes, you are right, and I think that Positive Money has consistentlypointed this out over the years, being confirmed by the Bank of England’s April 2014 report on the subject of money creation in modern monetary economies.I am also in the US. And in both cases / countries, a restoration of the...

December 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 DibleyWhat, are you brain damaged?Post the specific section in law that grants to the Fed and the U.S. banking system the power to create money in the form of bookkeeping entries and post the law that designates the debt based credit (bookkeeping entries) they do create as being a U.S. legal tender money,...

December 2016

Marco SabaMaybe a crowd-funding can help ?...

December 2016

Marco SabaI suggested to the Bank of England to redact a paper clarifying the matter but the clowns there answered that they don't have enough resources: http://leconomistamascherat......

December 2016
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Bank of England: UK banks to lose their status as ‘gatekeepers’ to the payment system

Gatekeeper to the payments system

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.

John CreasyAnybody here?...

April 2017

John CreasyBen Dyson: Any idea if this BoE opens such accounts now?...

April 2017

John CreasyHello, Are there any news about this issue? Has this happened?...

April 2017
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