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A Scottish Currency? – 5 Lessons from the Design Flaws of Pound Sterling

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Report, 10 pages

If an independent Scotland wished to establish its own currency, there is little sense in modelling the currency on a design that has already spectacularly failed many times in the UK, Europe and the US.

There is a better way which would give Scotland a safer banking system and an economy that is more stable and far less dependent on debt, a system where badly-run banks could be allowed to fail.

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Sovereign Money: Paving the Way for a Sustainable Recovery

Sovereign Money (Final Web)-1

Report, 60 pages
The UK’s economic recovery relies on ever-rising levels of household debt, meaning that it is ultimately unsustainable. However, the process of Sovereign Money Creation can make the recovery sustainable by providing another source of spending and income in the economy.

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Modernising Money: Why Our Monetary System is Broken, and How it Can Be Fixed

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(Book, 336 pages)
The book explains, in more detail than ever before, exactly how the monetary system can be fixed. The product of three years of research and development, these proposals offer one of the few hopes of escaping from our current dysfunctional monetary system. It is detailed but accessible to non-economists. (2013)

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Where Does Money Come From?


(Book, 140 pages)
What is money? How is it created? How does it enter into circulation? These are simple and vital questions it might seem, but the answers remain contested and often muddled. This book, published by the New Economics Foundation, provides a comprehensive overview of how the system actually works in non-technical language, and has already replaced the usual banking textbooks in some UK universities. (2011)

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The Positive Money System (In Plain English)

Positive Money Proposal in Plain Enligish - Cover

A shorter, plain English explanation of how we can fix our money system, written for people with no background in economics or banking. It explains how we can prevent commercial banks from being able to create money, and move this power to create money into the hands of a transparent and accountable body, who would create money in line with the needs of the economy and grant it to government to be spent into the economy. (2013)

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The Positive Money System (Technical)

Positive Money Proposal (Technical)

A more technical presentation of our reforms, for economists and those with some background in money and banking. This document presents a plan for monetary reform, based on a proposal initially put forward by Frederick Soddy in the 1920s, and then subsequently by Irving Fisher and Henry Simons in the aftermath of the Great Depression. Variations of these ideas have since been proposed by Milton Friedman (1960), James Tobin (1987), John Kay (2009) and Laurence Kotlikoff (2010). While inspired by Irving Fisher’s original work and variants on it, the proposals in this paper have some significant differences. The starting point was the work of Joseph Huber and James Robertson in their book Creating New Money (2000), which updated and modified Fisher’s proposals to take account of the fact that money, the payments system and banking in general is now electronic, rather than paper-based. (2013)

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Banking, Finance and Income Inequality

Graham Hodgson - Banking, Finance & Inequality

Inequality has increased continuously over the last thirty years. Many factors contribute to this growing gap, but one of the most significant is least understood: the role of money creation by banks. The evidence compiled in this paper suggests that there are several factors contributing to the growth of inequality, but at the heart is the operation of the banking system.

This study presents a framework mechanism for understanding how two potentially self-reinforcing circuits of money and wealth on the one hand and debt and hardship on the other are linked, through behaviour motivated by envy and the desire to emulate peers, to exacerbate inequality, and how the resulting anxiety and fear feeds through to policy choices which can mitigate or magnify the problem.

(Report, 16 pages, 2013)

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Banking vs Democracy

Banking vs Democracy

This report asks if power has shifted from Westminster down the river to the City of London. What we find is a banking system that has more ‘spending power’ than the democratically elected government, no accountability to the people, and massive concentration of power in the hands of a few individuals. (2012)

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Draft Legislation

Draft Legislation

This unofficial draft bill shows how our proposals could be implemented in law in the UK parliament. (April 2013)

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