Labour Bank of England review: Positive Money response

Responding to the launch of the Labour Party’s ‘Financing Investment’ report, Fran Boait, executive director of Positive Money said:

“It is encouraging to see a major political party thinking seriously about the biggest challenges facing our economy, namely how UK finance can be reconfigured towards productive lending and investment.

“Particularly welcome is the report’s proposal to extend the Bank of England’s mandate so that it targets productivity growth.

“However, in order to influence productivity growth, the Bank of England will require new tools to inject demand into the real economy. Such tools could include overt monetary financing, which would give the Bank the power to create new money which can be spent, via the Government, on productive investment in public goods such as infrastructure, house building, or social care.”

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.