Sir, Simon Ward (Letters, November 13) states that Adair Turner’s proposal to fund government spending with newly created money “would involve the creation of more Bank of England reserves, which represent a liability of the state and bear interest”. But there is no reason that the new liability would have to bear interest, since it could be issued as zero-coupon irredeemable bonds, reads the letter by Fran Boait in Financial Times, 16th Nov 2014.
"Greater regulation of banks does not offer any meaningful solution. Regulation ignores the larger issues at play. As we’ve seen in the limited scope of reforms since the crisis, what happens is that you get thousands of pages of complex regulation. But the bank lobby has huge resources, millions of pounds, to spend on lawyers to water down these changes. And there’s nobody fighting that battle on the side of society", argues Fran Boait, Positive Money's Executive Director in the interview in Cherwell, 8th November 2014
Printing money to fund deficit is the fastest way to raise rates and there are no technical reasons for rejecting this, only the fear of breaking a taboo, writes Lord Adair Turner in Financial Times, 10th November 2014.
New global rules to prevent banks that are "too big to fail" from being bailed out by taxpayers have been proposed by the Financial Stability Board (FSB). Mark Carney, FSB chairman and governor of the Bank of England, told the BBC the plans were a "watershed" moment.
Now, when Janet Yellen, the Fed chairwoman, has called time on quantitative easing in the US, there are quite a few people advocating injecting the money directly into veins of the economy.