The Monetary Reform resolution was put on the Parliament’s agenda in Iceland

Frosti Sigurjónsson, Member of the Parliament of Iceland and Chairman of the Committee for Economic Affairs and Trade, who published a report (commissioned by the Prime Minister) outlining the need for a fundamental reform of Iceland’s monetary system in March 2015, spoke for the resolution, where he said:

Despite various regulatory changes we have implemented in the past years we have not addressed the problem implied by the commercial banks creating money in the form of deposits. This has caused increased criticism of specialists in Iceland and abroad as it provides the banks with the flexibility and incentives to create money way beyond the need of the economy. Former governor of Bank of England has said “of all the many ways of organising banking, the worst is the one we have today.” and strongly encourages reform.

It’s long timely and in fact necessary that democratically elected representatives of the public make an independent review on the process of money creation, form an opinion and propose suggestions on how the legislation can be appropriately modified. Each participant should ask themselves if he wants to live with a currency which is effectively a debt of a credit institution or if it would be better that the Central Bank would rather issue the electronic currency that modern times require, but not only notes and coins.