The UK’s financial system isn’t working, and our politicians won’t be able to fix it until they understand the crucial impact of how money is created.
A poll of MPs by Dods Monitoring, conducted on behalf of Positive Money, revealed that only 1 in every 10 MPs understands that 97% of our money is created by the same banks that caused the financial crisis.
To fix the financial system, MPs need to fully understand the effects of money creation by commercial banks. That’s why Positive Money is calling on MPs to set up a Money Commission.
Under our current system – where banks create 97% of money in the UK economy – credit is concentrated in financial and property markets. This has led to dangerous levels of household debt, unaffordable housing and worsening inequality.
Economists say we’re at serious risk of another crash. A Money Commission would examine the effects of this system and consider alternatives.