It's been a busy week for journalists and economists criticising our proposals without bothering to a) read them or b) understand them. Jeremy Warner in the Telegraph claims we're in favour of allowing politicians to "print money to their hearts' content", when we've clearly stated that we wouldn't trust politicians to be responsible with the power to create money than we would trust banks. But John Aziz's blog in The Week is this week's worst offender for inaccuracies and misconceptions.
Our monetary system isn’t working. Only around 10% of new credit creation by banks goes to productive activity. The current ‘recovery’ is being driven by increased and unsustainable lending for household consumption and mortgage lending – writes Josh Ryan Collins, Senior Researcher at New Economics Foundation in this excellent article.
Positive Money's proposals to reform the creation of money have recently been commented on by Martin Wolf, the chief economics commentator at the Financial Times. Ann Pettifor argues that the proposal is 'deeply flawed' and would lead to “a shortage of money, high unemployment and low economic activity”.
Paul Krugman, the Nobel-prize* winning economist has written a commentary on Martin Wolf's article "Strip banks of their power to create money", in which Wolf advocates the policies that I and my co-author Andrew Jackson proposed in Modernising Money.