QE for Europe – an Opportunity Lost
28 January, 2015Quantitative easing is back, only this time in the Eurozone. But is the ECB making the right decision? Like many other economic commentators, here at Positive Money, we think it's the wrong decision, not because it will have little or no effect, but because it won't have the right effect! QE works by pouring money [...]
Is it possible to stop banks creating money? Or would shadow banks just take over?
12 December, 2014In a recent FT Alphaville article Izabella Kaminska argues that it is ‘naïve’ to attempt to constrain banks’ ability to create money, because this will only prompt other financial sector firms (‘shadow banks’) to create other forms of money that could be used as a substitute for money created by the state. Naturally, we disagree. Kaminska’s [...]