Adopted from:
http://positivemoney.org/publications/#sms and
http://positivemoney.org/our-proposals/
Our Proposals: Creating a Sovereign Monetary System
(Report, 56 pages)
This report presents a reform to the banking system that would remove the ability of banks to create money, in the form of bank deposits, when they make loans. It would transfer the ability to create new money exclusively to the state, creating what we have termed a ‘sovereign money’ system.
Will a sovereign money system be flexible enough?
(Report, 19 pages)
Some critics have argued that a sovereign money system, in which banks are unable to create money, would not be flexible enough to meet the needs of an economy. In response, this paper explains the range of policy options that mean that a sovereign money system can be as flexible – or inflexible – as authorities would like it to be.
Would there be enough credit in a sovereign money system?
(Report, 37 pages)
Some economists, journalists and politicians have claimed that Sovereign Money proposals, in which banks are not permitted to create money, would result in the economy suffering from a shortage of credit. This report deconstructs the underlying assumptions behind the criticisms with empirical evidence and shows that stripping the banking sector of its ability to create money would not result in a shortage of credit.
Accounting for Sovereign Money: Why state-issued money is not ‘debt’
(Briefing note, 9 pages)
In this briefing note we show that according to the International Accounting Standards and International Financial Reporting Standards, the guidelines used by accountants globally, sovereign money should be recorded as equity of the state, rather than debt. This initially counterintuitive result makes sense when we consider the way that sovereign money, or indeed any national currency, gets its value.
http://positivemoney.org/wp-content/uploads/2016/03/AccountingForSovereignMoney_20160309.pdf
Draft Legislation
This unofficial draft bill shows how our proposals could be implemented in law in the UK parliament. (April 2013)
INFOGRAPHIC – The Current System vs. Sovereign Money
This infographic shows the main differences between the current dysfunctional monetary system, and how it could be… View now
