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Positive Money is a not-for-profit research and campaigning organisation based in London.[1] Positive Money’s vision is for a money and banking system that enables a fair, democratic, and sustainable economy.[2]
History
[edit]Positive Money was founded in 2010 by Ben Dyson after watching the financial crisis unfold.[3] The group created explanatory videos on abolishing debt-based currency to arrest climate change.[4]
In 2013, Positive Money created the International Movement for Monetary Reform.[5]
In 2016, Positive Money founder Ben Dyson joined the Bank of England, working on Central Bank Digital Currency.[6]
Sovereign Money
[edit]The Bank of England explains how the majority of money in the modern economy is created by commercial banks making loans.[7] Under sovereign money, commercial banks would not have the power to create new money. Money creation would be the sole preserve of the state through its central bank.[3]
Green Bank of England
[edit]The Bank of England is stress testing the largest UK banks and insurers against climate-related financial risks. Positive Money called for fossil fuel assets being excluded from bond purchases.[8] After Positive Money, 350, and SumOfUs delivered a petition with 65,000 signatures, the Bank of England updated its remit for environmentally sustainable growth with transition to net zero.[9]
Critics
[edit]The Vice-President of the European Central Bank listed Positive Money as having a narrow banking as a structural reform proposal.[10] Critics say narrow banking risks providing the economy with too little credit.[3] Joseph Huber explains that a Sovereign Money system “Abandons the split-circuit structure based on a mixed money supply of deposits and reserves in favour of a single circuit on the basis of sovereign money only, issued by the central bank.”[11]
References
[edit]- ^ "Who we are". Positive Money. Retrieved 2022-01-20.
- ^ "Our vision". Positive Money. Retrieved 2022-01-20.
- ^ a b c Douglas, Jason (2015-08-19). "U.K. Activist Group Emerges as Voice for Monetary Reform". Wall Street Journal. ISSN 0099-9660. Retrieved 2022-01-20.
- ^ Hickel, Jason (5 Nov 2016). "To deal with climate change we need a new financial system". The Guardian.
{{cite web}}: CS1 maint: url-status (link) - ^ Selby-Green, Michael (Jun 11, 2018). "Swiss voters rejected a radical move to change the way money is created". Business Insider.
{{cite web}}: CS1 maint: url-status (link) - ^ Meaning, Jack; Dyson, Ben; Barker, James; Clayton, Emily (2018-05-18). "Broadening Narrow Money: Monetary Policy with a Central Bank Digital Currency". Rochester, NY.
{{cite journal}}: Cite journal requires|journal=(help) - ^ "Money creation in the modern economy". www.bankofengland.co.uk. Retrieved 2022-01-20.
- ^ "Bank of England criticised for financing carbon-intensive firms". BBC News. 2021-01-25. Retrieved 2022-01-21.
- ^ Reporter, Financial. "Bank of England instructed to align monetary policy with net zero target". Financial Reporter. Retrieved 2022-01-21.
- ^ Bank, European Central (2016-07-07). "Challenges for the European banking industry". European Central Bank. Retrieved 2022-01-21.
- ^ "Setting the record straight: Sovereign Money is not Full-Reserve Banking". Positive Money. 2017-04-27. Retrieved 2022-01-21.