guidance? Should credit guidance, including the suppression of credit creation for speculative purposes, be reintroduced into the UK monetary policy toolset? Could this be one of the powers of the new Financial Policy Committee? And should such measures be combined with further policies to encourage productive credit creation (such as giving banks incentives to lend to small and mediumsized enterprises, for instance through rules about bank bonuses),17 and policies that reshape the banking sector, such as encouraging more small, local or regional banks that are incentivised to develop long-term local relationships with customers? What part could complementary currencies play in improving the stability of the monetary system by providing alternative means of exchange during periods of credit contraction? Should the UK Government set up national banks able to create credit at zero or very low rates of interest for specific infrastructure projects?* Should the restrictions imposed upon direct government credit creation by the Maastricht Treaty be reviewed? It is disappointing that so few of these questions have been addressed by national and international initiatives examining reform of the financial system so far. Indeed, in the UK the Independent Commission on Bankingâ€™s reports included scant and inaccurate discussion of the key role played by banks in creating new money.
Andrew Jackson - Where Does Money Come From - Positive Money pdf from epub