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Positive Money

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Positive Money UK
Formation2010; 14 years ago (2010)
TypeNon-governmental organisation
Legal statusCompany limited by guarantee
HeadquartersLondon, United Kingdom
Executive Director
Fran Boait[1]
Chair of the Board
Sian Williams
Key people
Ben Dyson (founder)
AffiliationsFinance Watch
Budget (2019)
480,000 GBP
Staff
10 (2020)
Websitewww.positivemoney.org

Positive Money UK is a not-for-profit advocacy group based in London and Brussels.[2][3][4] Positive Money's mission is to promote various reforms of central banks and alternative monetary policy.[5] Its current executive director is geophysicist Fran Boait.[6]

History

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Positive Money was founded in London by Ben Dyson in 2010[7] as a response to the global financial crisis of 2007-2008. In its early years, Positive Money focused its efforts in advocating for a fundamental reform of the United Kingdom's monetary system.

In 2013, Fran Boait became executive director of Positive money. Under Boait's leadership, the organisation somehow broadened its scope and diversified its range of proposals, by including more pragmatic steps such as digital currency, and various forms of monetary financing proposals such as "People's QE" or "helicopter money", and "green quantitative easing". Positive Money also adopted new tactics such as rallies in front of the Bank of England[8] and petitioning. In 2013, Positive Money initiated the International Movement for Monetary Reform, a worldwide network of likeminded organisations.[9]

In 2015, Positive money started its international expansion by launching a Eurozone-wide campaign on "Quantitative Easing for the People".[10][11] Positive money registered as a lobby group in the EU institutions in Brussels[12] and in 2018 it formally created Positive Money Europe[13] to operate the group's campaigns towards the European Central Bank and the European Parliament. In December 2019, Positive Money Europe was able to meet with the ECB President Christine Lagarde[14] and its work has been praised by former ECB's chief economist Peter Praet.[15]

In 2016 Positive money founder Ben Dyson joined the Bank of England as a researcher, and he continued to work on Central Bank Digital Currency.[16][17]

Early 2021, Positive money won a major victory with the announcement that the Bank of England would be given the remit to green its corporate quantitative easing programme.[18]

Proposals

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Sovereign money

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Positive Money's historical backbone proposal is to introduce a "sovereign money system".[19][20] Under such a reform, private banks would be deprived from their ability to create money by extending credit into the economy. In turn, the Bank of England would regain the monopoly over money creation, by financing the government's budget (monetary financing) or distributing a citizens' dividend ("helicopter money").[21][22] The group however refutes any affiliation with Modern Monetary Theory.[23]

Positive Money Europe
Formation2018; 6 years ago (2018)
TypeNon-governmental organisation
Legal statusASBL
HeadquartersBrussels, Belgium
Executive Director
Vicky Van Eyck
Chair of the Board
Fran Boait
Budget (2019)
140,000 EUR
Staff
7 (2020)
Websitewww.positivemoney.eu

Although Positive Money's proposal is similar to full-reserve banking or narrow banking, it differs in the sense that it would merge bank deposits and central bank money. As explained by former Positive Money researcher Frank van Lerven, "Under a Sovereign Money system, there is no longer a split circulation of money, just one integrated quantity of money circulating among banks and non-banks alike."[24] According to former ECB Vice-president Vitor Constancio, Positive Money's proposal "would not create enough funding for investment and growth."[25]

Other proposals

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Over the years, Positive Money has broadened its agenda towards somewhat more short-term proposals such as:

  • Fiscal-monetary cooperation: the organisation proposes various ways to channel money created by central banks towards public spending and investment.
  • Reforming the governance and accountability frameworks of the Bank of England[26][27] and of the European Central Bank.[28]
  • Greening monetary policy: Aligning monetary policy with climate change objectives[29][30][31][32] though reforms of central bank's collateral framework or forms of credit guidance such as green TLTROs.[33][34]
  • Digital currency: the organisation propose implementing a central bank digital currency[35] in the UK and supports the introduction of a digital euro by the ECB.

See also

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References

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  1. ^ Fran Boait, "Monetary policy has an enormous impact on politics. It's time for a radical rethink", The Guardian, 12 October 2016 (page visited on 23 February 2018).
  2. ^ "Making money and banking work for society". positivemoney.org. Retrieved 1 March 2018.
  3. ^ Jason Douglas, "UK activist group emerges as voice for monetary reform", The Wall Street Journal, 19 August 2015 (page visited on 23 February 2018).
  4. ^ Glaser, Eliane. "Nation-states aren't households: debating their economies as if they are is stupid". New Statesman.
  5. ^ "Our vision - Positive Money". positivemoney.org. Retrieved 28 September 2018.
  6. ^ "Finance Summit 2022". 5 November 2020.
  7. ^ (in French) "Monnaie pleine : une opportunité en Suisse pour changer la monnaie" [The "Full money" federal popular initiative: an opportunity to change currency in Switzerland], La revue durable, number 60, winter-spring 2017-2018, pages 26-29.
  8. ^ "Impact of the financial crash on UK households: Most homes lost £23,000". Compelo - latest news, features and insight on influencers and innovators within business. 14 September 2018. Archived from the original on 28 September 2018. Retrieved 28 September 2018.
  9. ^ "UK - Positive Money".
  10. ^ Ewing, Jack (2 December 2015). "E.C.B. Expected to Expand Eurozone Stimulus, as Questions of Effects Remain". The New York Times. Retrieved 28 September 2018.
  11. ^ "La planche à billets pour tous". Alternatives Economiques (in French). Retrieved 28 September 2018.
  12. ^ "Positive Money Europe (PMEU) | LobbyFacts Database". lobbyfacts.eu. Retrieved 2 April 2021.
  13. ^ Positive Money Europe (23 June 2018). "Launch event: Time to Rethink the European Central Bank?". Positive Money Europe. Retrieved 2 August 2020.
  14. ^ Positive Money Europe (4 December 2019). "Christine Lagarde meets with Positive Money Europe". Positive Money Europe. Retrieved 25 November 2020.
  15. ^ “By stimulating debates on money and banking within civil society, Positive Money Europe has pioneered open-minded thinking on monetary policy." testimonial by Peter Praet in Positive Money Europe's annual report for 2019.
  16. ^ Meaning, Jack; Dyson, Ben; Barker, James; Clayton, Emily (2018). "Broadening Narrow Money: Monetary Policy with a Central Bank Digital Currency". SSRN Electronic Journal. doi:10.2139/ssrn.3180720. ISSN 1556-5068. S2CID 158676984.
  17. ^ BankUnderground (30 May 2018). "Would a Central Bank Digital Currency disrupt monetary policy?". Bank Underground. Retrieved 2 April 2021.
  18. ^ Reporter, Financial. "Bank of England instructed to align monetary policy with net zero target". Financial Reporter. Retrieved 2 April 2021.
  19. ^ "Sovereign Money: An Introduction - Positive Money". positivemoney.org. Retrieved 12 November 2017.
  20. ^ (in German) Daniel Eckert, "Der Krieg um das sichere Geld der Zukunft", Die Welt, 12 January 2014 (page visited on 23 February 2018).
  21. ^ "Interview with Stanislas Jourdan". Green European Journal. 30 April 2019. Retrieved 18 January 2022.
  22. ^ Glaser, Eliane. "Nation-states aren't households: debating their economies as if they are is stupid". New Statesman.
  23. ^ "Our vision - Positive Money". positivemoney.org. Retrieved 28 September 2018.
  24. ^ "Setting the record straight: Sovereign Money is not Full-Reserve Banking - Positive Money". positivemoney.org. 27 April 2017. Retrieved 28 September 2018.
  25. ^ Constancio, Vitor (7 July 2016). "Challenges for the European banking industry". European Central Bank. Retrieved 28 September 2018.
  26. ^ "BoE reform needed to boost firepower for downturns, think tank says". euronews. 22 October 2019. Retrieved 11 November 2019.
  27. ^ "Why diversity at the Bank of England matters - Positive Money". positivemoney.org. 14 June 2018. Retrieved 28 September 2018.
  28. ^ "ECB Needs More Scrutiny From European Parliament, Report Says". Bloomberg.com. 9 April 2019. Retrieved 11 November 2019.
  29. ^ Strauss, Delphine (14 May 2018). "Bank of England urged to focus on green objectives". Financial Times. Retrieved 28 September 2018.
  30. ^ Chrispin, Sebastian. "Reality Check: Could the Greens change how money works?". BBC. Archived from the original on 30 November 2016.
  31. ^ Jason Hickel, "To deal with climate change we need a new financial system", The Guardian, 5 November 2016 (page visited on 23 February 2018).
  32. ^ "Climat : le Parlement européen encourage la BCE à faire sa révolution". Les Echos (in French). 12 February 2020. Retrieved 25 November 2020.
  33. ^ "ECB Encouraged to Create New Green Bank-Lending Program". Bloomberg.com. 22 September 2020. Retrieved 25 November 2020.
  34. ^ Fabrice Anselmi, La fin des TLTRO pourrait préfigurer des opérations de «refinancements verts», L'Agefi.fr
  35. ^ "Digital Cash: Why central banks should issue digital currency". positivemoney.org. Retrieved 28 September 2018.
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