Is the Next Global Financial Crisis Upon US?
21 August, 2015Financial markets are currently in a frenzy – and a global market crash could be just minutes away. Earlier last week, China allowed its currency to fall in value, prompting its highest one-day decline in over two decades. Today, data shows that China’s factories have contracted at their fastest pace since the most recent financial [...]
Banks can be stripped of money creation power without starving economy of credit (New Report)
15 July, 2015Positive Money has today released a report showing that stripping the banking sector of its ability to create money, a proposal endorsed by e.g. Martin Wolf, Chief Economics Commentator of FT, would not result in a shortage of credit. Some economists, journalists and politicians have claimed that Sovereign Money proposals, in which banks are not permitted [...]
Grexit – Seize the Opportunity
3 July, 2015A Grexit might never happen, but it could also be just days away. If a Grexit does happen, is it all doom and gloom, or is there a glimmer of hope? The re-establishment of the World’s oldest currency could represent a new path for monetary reform. One which is fit for purpose and designed to [...]
Iceland’s Sovereign Money Proposal: A Response to Bill Mitchell
5 June, 2015In a two-part blog post, Bill Mitchell recently used the publication of the Icelandic paper on Sovereign Money to set out his position on the proposals. We believe that Bill (and other proponents of Modern Monetary Theory) and Positive Money have, to an extent, very similar objectives. Therefore, as we have previously suggested, there is [...]
A common misconception: Positive Money does not advocate any centralised decision making with regards to loans
5 June, 2015In a recent blog post, Richard Murphy makes a number of points about our Sovereign Money proposals. In the post there was a common misconception about Sovereign Money that requires clarification – Positive Money does not, and never has advocated any centralised decision-making with regards to making loans. Richard states: “However, it also requires recognition [...]
Deflation, Wages, and Productivity: Connecting the Dots
26 May, 2015For the first time in half a century, the UK has officially entered deflation. But wait; is that a good thing or a bad thing? Why is there all of a sudden so much talk about wages and productivity? And exactly what is deflation again? Deflation in the UK Explained Consumer prices have dropped by [...]
Defl-Asian: The biggest threat to Asian economies & global financial stability?
19 May, 2015Prices are dropping quickly across the board in Asia, productivity is declining, private debt is soaring, growth is slowing, and the prospect of deflation is looming across the entire region. Indeed, deflation is possibly the biggest threat to Asian economies, not to mention global financial stability. The traditional tools for preventing such deflation have all [...]
Lowering Interest Rates or Sovereign Money?
14 May, 2015Seven years have passed since the start of the financial crisis, and the vast majority of central banks around the world have already lowered their interest rate to the zero lower bound* or are still continuously lowering their benchmark interest rates. It appears that the majority of central banks think they have to choose between [...]
What the Politicians Really Aren’t Talking About?
28 April, 2015As the UK general election is nearly upon us, many commentators are highlighting the important issues that the majority of politicians seem reluctant to discuss. While I read, watch, or listen, I’m left slightly disgruntled, often feeling less satisfied than before having engaged with the coverage. There is one issue that isn’t being mentioned [...]