After a slow but steady increase since October, the UK rate of inflation fell to 0.3% in April from 0.5% in March, deviating from the expectations that economists had pencilled in. What triggered this decline? And more importantly, what are some of the headwinds in the face of monetary policy?
Positive Money advocates a shift away from the current ‘debt-based’ monetary system, in which almost all money is created by commercial banks when they make loans, to a ‘sovereign money’ system in which only the central bank is able to issue new money. In the past, we’ve described sovereign money as ‘debt-free money’, because it is spent into the economy without any household or firm taking on further debt.
Lord Mervyn King, who was Governor of the Bank of England from 2003-2013 and saw the financial crisis play out from the centre of the action, has just released his new book, The End of Alchemy. Our short review of the book is available here. This article explains his proposal for the Bank of England to become a "Pawnbroker for All Seasons".
Lord Mervyn King, who was Governor of the Bank of England from 2003-2013 has just released his new book, The End of Alchemy. The book is not a memoir of his time at the Bank of England; he comments that historians will be able to give a less biased view of his performance in that time, and that most biographies of this kind have been self-serving. Instead, it's his analysis of the problems with the current financial system.
Unstable financial markets are making headlines once again. This time around politicians and regulators are being forced to admit they do not have the tools they need to build a strong economy and avoid another crisis.