Responding to Bank of England deputy governor Jon Cunliffe’s warnings about household debt this morning, Fran Boait, executive director of Positive Money said:
“After a decade of stagnant wage growth, families have been forced to keep up with rising costs with borrowing. This mountain of debt makes the economy extremely vulnerable to rising interest rates, so the Bank of England is right to be worried.
“With limited room for manoeuvre on interest rates, the Bank of England will need new tools for the next downturn. This could include forms of monetary financing such as ‘helicopter money’, which would see the central bank distributing funds directly to households, allowing them to pay down debts and increase financial resilience.”
About Positive Money
Positive Money campaigns for a money and banking system which supports a fair, democratic and sustainable economy. Set up in the aftermath of the financial crisis, Positive Money is a not-for-profit company funded by charitable trusts and foundations, as well as small donations from its network of over 65,000 supporters.
Policy and Media Officer, Positive Money
Simon works on Positive Money’s influencing programme, focusing on media engagement and policy research.
Before joining Positive Money, Simon handled media outreach for a number of technology companies and campaigns, and worked in a variety of roles in local government. He has a Masters in History from the University of Manchester, for which he specialised in the financialisation of the British economy.