At the moment, give or take a bit of quantitative easing, all money is conjured into existence by private banks, 85% of it as loans on existing residential property. It’s a recipe for unaffordable housing and unmanageable private debt, but it’s also undemocratic; writes Zoe Williams in the Guardian, 9th January 2017.
Do you know how money is created and gets into the economy?
What’s wrong with our financial system? Chief Economics Commentator of Financial Times explains. (Video)
In just 4 minutes Martin Wolf, Chief Economics Commentator of the Financial Times, clearly states point by point what is the problem with our current financial system and how we can fix it:
More than 23,000 people in 20 countries were asked about who they think actually creates 95% of the money in circulation and who they think should create most of the money.
Geoff Tily has some interesting and balanced analysis on the academic debate around money reform, in particular the debate between Giuseppe Fontana and Malcolm Sawyer, and Positive Money, which is currently playing out in the Cambridge Journal of Economics.