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Why we disagree with Ann Pettifor

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A couple of months ago, Positive Money's proposals to reform the creation of money were featured by Martin Wolf (the chief economics commentator at the Financial Times). In an article entitled "Why I disagree with Martin Wolf and Positive Money", veteran campaigner and economist  Ann Pettifor responded that the proposal is 'deeply flawed', 'outlandish', and would lead to "a shortage of money, high unemployment and low economic activity".

sacicrI would like some one to evaluate what I say here. Because I am not an expert, but I think Anne Pettifor is wrong for the following two reasons (apart from all those mentioned in the above article).1) If 97% of the money supply is created as a debt, compound interest will make the debt grow exponent...

4 weeks ago

Jamie Walton"ensure that things stay just as they are." - Wow! That says it all really.Things staying just as they are is not an option.The present system is extractive, is increasingly extractive, and is not sustainable.The present system is driving environmental destruction and leading our biosphere to the p...

last month

Jamie WaltonCorrect PJM.Ann Pettifor also seems to be overlooking that savings, once lent, are then spent and are returned into the income stream, so it's not an ever-diminishing scenario. Money would simply pass back and forward between savers and borrowers (as it does now with all non-bank lending; e.g., pee...

last month
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jakeSo how do Bank of England interest rates have an effect on Prive bank credit allocation at all?This is a real blindspot in my understanding of the monetary system.I understand that banks create credit.But what is the realtionship between BOE interest rates and Private bank lending.What are reserves?...

July 2014

simonThe credit multiplier has been shown not to be an accurate description of how the current banking sytem works, although it wrongly still gets top billing in economics text books. Banks tend to lend first, then seek the reserves later to support that lending. The book "Where does money come from" giv...

June 2014

David CroxtonSurely, if banks just electronically print the money they choose, then they can print the reserves also. It's only ordinary working people who suffer, who are then fooled into thinking they can safely borrow. We need politicians bright and strong enough to both understand the real situation who will...

June 2014
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bill439Has Coppola never heard of shadow banking. In 2013 its total assets were $21trillion ($67tr in 2007). Wha do they do with them? They lend them and they are outside the commercial banking system....

May 2014

SimonIt is difficult to understand why Coppola and Pettifor think that the existing system has merit when they must be able to see the negative effects it has had in recent times. Coppola has worked for a bank, and raises accounting objections to changing things, when an engineering solution is required....

May 2014

Sanjay MittalFrances Coppola’s claim that “Banks are not fund managers” is a joke. If she looked at the Financial Times she’d find that every large bank “manages” a whole string of mutual funds or “unit trusts” as they’re called in the UK. Indeed, in Laurence Kotlikoff’s version of full reser...

May 2014
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