Public Money Creation – Neither Right nor Left, Just the Way Forward
2 December, 2015Jeremy Corbyn’s proposal for ‘People’s Quantitative Easing’ has helped get the debate on money creation into the mainstream. On the one hand, it is a breath of fresh air to see well-known politicians propose reforms that Positive Money has been advocating for the last five years. On the other, it is frustrating because a robust [...]
Does Public Money Creation always lead to hyperinflation? It didn’t in Britain (A History of Public Money Creation 1 of 8)
2 December, 2015Throughout history, governments have used their ability to create money to fund public spending. While none of these policies were called, “People’s QE”, "Strategic QE", “Sovereign “Money Creation”, or “Helicopter Money” (what Positive Money collectively refers to as Public Money Creation), they shared the common trait of using newly created state money to finance government spending, [...]
Breaking Taboos: David Graeber’s thoughts on the next crash
29 October, 2015Setting out to break some of the deeply entrenched taboos pervading economics in Britain, David Graeber has written an excellent piece on why he believes that we are heading for another 2008 crash. While we do not agree with all the points raised in Graeber’s article, it does a great job of highlighting how fiscal policy [...]
The Interest Rate Dilemma: Financial Crisis Either Way???
18 October, 2015An awkward stand off has emerged amongst some of the World’s leading monetary policy-makers. On the one hand, the IMF has warned central bankers that in the face of low growth and deflation, increasing interest rates and stopping QE risks triggering another global crisis. On the other, a group of central bank governors countered the [...]
Yanis Varoufakis & Olivier Blanchard: In Favour of People’s Quantitative Easing
9 October, 2015Two of Europe’s most renowned economists have recently come out in favour of exploring some form of People’s Quantitative Easing. Former Greek Minister of Finance, Professor Yanis Varoufakis, and former IMF chief economist Olivier Blanchard have both agreed that an alternative form of quantitative easing could be a viable option. On BBC question time, Professor Varoufakis [...]
John McDonnell: QE for People will entail an independent Bank of England
29 September, 2015In his first speech as Labour’s shadow chancellor, John McDonnell has stated that the Bank of England should remain independent but that a debate on the Bank’s mandate is necessary. The new shadow chancellor also indirectly suggested that QE for the People should only be used to boost economic activity when aggregate demand is low. [...]
Corbynomics needn’t be your cup of tea, but QE for the People is a good idea
17 September, 2015It is no secret that right wing media correspondents take significant issue with Jeremy Corbyn’s proposals for economic reform. However, because People’s QE is actually an apolitical monetary policy proposal, one of the Telegraph’s leading economic commentators endorses it. In a recent article, titled “Jeremy Corbyn’s QE for the people is exactly what the [...]
Reform 101: Why do we want to redefine money? (Post 1)
11 September, 2015There are a number of problems with our current monetary system, in which the vast majority of money is created by banks, when they make loans. At Positive Money we try to unravel the issues related to money creation and raise awareness about them. In doing so we hope to arm everyday people with the [...]
Money Creation: Explaining What’s Happening in China?
1 September, 2015The current economic slump and recent stock market crash in China has got many people asking exactly what is happening in China? There are numerous theories explaining the situation, and the majority of them make valid points. Many analysts, however, have neglected the vast accumulation of private debt, in their explanations. This piece argues that [...]