There is already enough money in people’s savings accounts today to cover all of the lending that is needed for businesses and mortgages put together. The problem is that banks prefer to lend to property and speculation than to invest in businesses. Part of our reforms allow the Bank of England to create money that banks can then lend to businesses, to ensure that there’s never a shortage of credit for the real (non-financial) economy.
Posted in: 3. The Positive Money proposals