IPPR, the Institute for Public Policy Research, one of the UK’s leading thinktanks, published new report this week. In this report they argue for structural reform to address the deeper institutional arrangements that underpin financialisation and call for establishment of an in-depth parliamentary commission to investigate the role of money and credit within the economy.
"Post-crisis efforts to bolster economies and create safer banks have only preserved a flawed system.", according to the Financial Times' chief economics commentator Martin Wolf in his article"Financial reform: Call to arms". Martin's article highlights the fact that relying on banks to create our money will guarantee a boom-and-bust economy. As he suggests, returning the power to create money to the state - under strict controls and in a transparent way - could give us a more stable economy that is less reliant on debt. Here's a short extract:
The BBC published an article on Saturday "Ecuador gives details of new digital currency" reporting that the Central Bank of Ecuador was to issue a digital currency. The story apparently originated with the New Delhi Television (NDTV) technology team, to which the BBC provides a link. The BBC report is largely a rewrite of the NDTV article but claims that the money is to be used to pay civil servants, which is flatly contradicted by the NDTV article, and which apparently comes from an August 24th piece in the Wall Street Journal attacking the plan. The official currency of Ecuador is the US dollar with coins denominated in fractions of a dollar issued by the Central Bank and The WSJ article labelled the proposals "an escape hatch to get out of dollarization."
This is an excerpt from James Robertson's newsletter. James Robertson is the co-author of the book Creating New Money: A Monetary Reform for the Information Age (2000). Positive Money proposals are heavily based on this work which in turn builds on the original proposal for „Full Reserve Banking“ by Irving Fisher.