Monetary policy is one of the most important aspects of our world. It is also among the most misunderstood, reads the article in The Week, 17th October 2014, entitled How to get America to full employment — and fast
The power to create money, in the hands of commercial banks, has been highlighted as one of the root causes of both the Great Depression of the 1930s and the financial crisis of 2007-2009. Lord (Adair) Turner, the former chairman of the UK’s Financial Services Authority, has argued that: “The financial crisis of 2007/08 occurred because we failed to constrain the private financial system’s creation of private credit and money” (2012).
A number of writers on monetary reform have argued for the banning of charging of interest. They see the use of interest as a major contributor to inequality and destruction of the environment. It's well worth reading some of these arguments, such as those of Margit Kennedy - Interest and Inflation Free Money or Money & Sustainability: The Missing Link by Bernard Lietaer, and there's further research to be done there.
Positive Money has done excellent work in providing information and resources for economics students (and teachers) about how money and banking actually work. As we know the contemporary reality is very different from the routinely taught neo-classical account of money, banking and debt. Now that the Bank of England has confirmed, if not all then certainly substantial parts of the account given by monetary reformers, then even the most die-hard acolyte of the neo-classical church will find it that bit harder to cling to their position.
The five richest families in the UK are wealthier than the bottom 20 per cent of the entire population and the gap between the rich and the rest has grown significantly over the last two decades, according to new figures published today by Oxfam.