Organization:Positive Money

From HandWiki
Positive Money UK
Formation2010; 16 years ago (2010)
TypeNon-governmental organisation
Legal statusCompany limited by guarantee
HeadquartersLondon, United Kingdom
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 that campaigns for monetary reform.[1][2] Founded in 2010, the organization promotes central bank reforms and alternative monetary policy,[3] with a focus on what it terms "sovereign money" systems.[4]

History

Positive Money was founded in London by Ben Dyson in 2010[5] as a response to the 2008 financial crisis. In its early years, Positive Money focused its efforts in advocating for a fundamental reform of the United Kingdom's monetary system,[6] focusing on how money is created in the economy.[7]

Early work centered on education about fractional-reserve banking[8][9] and disconnecting private banks from money creation.[10] Dyson criticized the banking sector's role in housing unaffordability,[11] with financial instability leading to inequality.[12]

In 2013, Fran Boait became executive director,[13] marking a significant shift in the organisation's approach. Under Boait's leadership, Positive Money broadened its scope beyond fundamental monetary reform to include pragmatic policy proposals. These include advocacy for digital currencies, monetary financing proposals such as "People's Quantitative Easing" and "helicopter money", and environmental use of monetary policy through "green quantitative easing".

Positive Money stated that QE was ineffective in boosting GDP.[14] Positive Money also adopted new tactics such as rallies in front of the Bank of England[15] and petitioning. In 2013, Positive Money initiated the International Movement for Monetary Reform, a worldwide network of likeminded organisations.[16]

In 2015, Positive money started its international expansion by launching a Eurozone-wide campaign on "Quantitative Easing for the People".[17][18] Positive money registered as a lobby group in the EU institutions in Brussels[19] and in 2018 it formally created Positive Money Europe[20] 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.[21]

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.[22] In 2020, he joined the Bank for International Settlements and works on Project Nexus cross-border payment systems.[23]

In early 2021, Positive Money claimed a major policy victory when the Bank of England announced it would incorporate environmental considerations in its corporate quantitative easing programme, aligning with Positive Money's advocacy for "green monetary policy."[24][25]

Proposals

Sovereign money

Positive Money's historical backbone proposal is to introduce a "sovereign money system".[26][27] Under such a reform, private banks would be deprived from their ability to create money by extending credit into the economy.[28] In turn, the Bank of England would regain the monopoly over money creation,[29][30] by financing the government's budget (monetary financing) or distributing a citizens' dividend ("helicopter money").[31] While some Positive Money advocates also endorse Modern Monetary Theory, MMT claims that money is already issued as sovereign currency.[32]

Positive Money Europe
Formation2018; 8 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[33] 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."[34] According to former ECB Vice-president Vitor Constancio, Positive Money's proposal "would not create enough funding for investment and growth."[35]

Other proposals

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[36] and of the European Central Bank.[37]
  • Greening monetary policy: Aligning monetary policy with climate change objectives[38][39][40] though reforms of central bank's collateral framework or forms of credit guidance such as green TLTROs.[41][42]
  • Digital currency: the organisation propose implementing a central bank digital currency[43] in the UK and supports the introduction of a digital euro by the ECB.[44]

Reception and criticism

Positive Money's proposals created significant debate in financial, academic, and policy communities. Supporters argue the proposals address fundamental flaws in the monetary system that contribute to financial instability, income inequality, and unsustainable energy production.[45]

Critics raise concerns about sovereign money systems. Mainstream economists argue removing banks' money creation could constrain credit and investment. Critics also claim it could stimulate expansion of shadow banking.[46]

The organization's more pragmatic proposals received broader support and central banks have partially adopted green monetary policy.[47]

See also

References

  1. ↑ Jason Douglas, "UK activist group emerges as voice for monetary reform", The Wall Street Journal, 19 August 2015 (page visited on 23 February 2018).
  2. ↑ Glaser, Eliane. "Nation-states aren't households: debating their economies as if they are is stupid". New Statesman. http://www.newstatesman.com/politics/2015/03/nation-states-arent-households-debating-their-economies-if-they-are-stupid. 
  3. ↑ Mackintosh, Stuart P. M. (2025-04-25) (in en). Climate Crisis Economics: A Race of Tipping Points. Taylor & Francis. ISBN 978-1-040-33733-2. https://www.google.com/books/edition/Climate_Crisis_Economics/z65aEQAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+UK+mission&pg=PT132&printsec=frontcover. 
  4. ↑ Ingham, Geoffrey (2020-01-08) (in en). Money. John Wiley & Sons. ISBN 978-1-5095-2685-7. https://www.google.com/books/edition/Money/YnDJDwAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+%22sovereign+money%22+system&pg=PA2015-IA6&printsec=frontcover. 
  5. ↑ (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.
  6. ↑ Stellinga, Bart; Hoog, Josta de; Riel, Arthur van; Vries, Casper de (2021-06-03) (in en). Money and Debt: The Public Role of Banks. Springer Nature. ISBN 978-3-030-70250-2. https://www.google.com/books/edition/Money_and_Debt_The_Public_Role_of_Banks/oqkxEAAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+-mindset&pg=PA135&printsec=frontcover. 
  7. ↑ Mellor, Mary (2019-07-03) (in en). Money: Myths, Truths and Alternatives. Policy Press. ISBN 978-1-4473-4628-9. https://www.google.com/books/edition/Money/e0ufDwAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+-mindset&pg=PA159&printsec=frontcover. 
  8. ↑ Gould, B. (2013-09-16) (in en). Myths, Politicians and Money: The Truth Behind the Free Market. Springer. ISBN 978-1-137-35863-9. https://www.google.com/books/edition/Myths_Politicians_and_Money/VVdOAwAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+-mindset&pg=PT171&printsec=frontcover. 
  9. ↑ Barinaga Martín, Ester (2024-04-30) (in en). Remaking Money for a Sustainable Future: Money Commons. Bristol University Press. ISBN 978-1529225389. https://bristoluniversitypress.co.uk/money-commons. 
  10. ↑ Hart’s, Keith (2017-06-01) (in en). Money in a Human Economy. Berghahn Books. ISBN 978-1-78533-560-0. https://www.google.com/books/edition/Money_in_a_Human_Economy/iWi6DQAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+money+created&pg=PA196&printsec=frontcover. 
  11. ↑ Clarke, Chris (2015-10-23) (in en). Ethics and Economic Governance: Using Adam Smith to understand the global financial crisis. Routledge. ISBN 978-1-317-36788-8. https://www.google.com/books/edition/Ethics_and_Economic_Governance/tLvMCgAAQBAJ?%20hl=en&gbpv=1&dq=%22Positive+Money%22+Dyson+instability&pg=PA117&printsec=frontcover. 
  12. ↑ Ali, Abdelrahman Elzahi Saaid; Ali, Khalifa Mohamed; Khaleequzzaman, Muhammad (2020-07-01) (in en). Enhancing Financial Inclusion through Islamic Finance, Volume I. Springer Nature. ISBN 978-3-030-39935-1. https://www.google.com/books/edition/Enhancing_Financial_Inclusion_through_Is/7-HuDwAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+-mindset&pg=PA45&printsec=frontcover. 
  13. ↑ Tam, Henry (2021-07-30) (in en). Tomorrow’s Communities: Lessons for Community-based Transformation in the Age of Global Crises. Policy Press. ISBN 978-1-4473-6112-1. https://www.google.com/books/edition/Tomorrow_s_Communities/Mnk5EAAAQBAJ?hl=en&gbpv=1&dq=%22positive+money%22+director+Boait&pg=PA39&printsec=frontcover. 
  14. ↑ Crocker, Geoff (2020-02-20) (in en). Basic Income and Sovereign Money: The Alternative to Economic Crisis and Austerity Policy. Springer Nature. ISBN 978-3-030-36748-0. https://www.google.com/books/edition/Basic_Income_and_Sovereign_Money/NvHRDwAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+-mindset&pg=PA18&printsec=frontcover. 
  15. ↑ "Impact of the financial crash on UK households: Most homes lost £23,000" (in en-US). Compelo - latest news, features and insight on influencers and innovators within business. 2018-09-14. https://www.compelo.com/average-household-after-financial-crash/. 
  16. ↑ Selby-Green, Michael. "Swiss voters rejected a radical move to change the way money is created" (in en-US). https://www.businessinsider.com/swiss-voters-reject-vollgeld-2018-6. 
  17. ↑ Ewing, Jack (2 December 2015). "E.C.B. Expected to Expand Eurozone Stimulus, as Questions of Effects Remain" (in en). The New York Times. https://www.nytimes.com/2015/12/03/business/international/ecb-expected-to-expand-stimulus-as-questions-of-effects-remain.html. 
  18. ↑ "La planche à billets pour tous" (in fr). Alternatives Economiques. https://www.alternatives-economiques.fr/planche-a-billets/00082408. 
  19. ↑ "Positive Money Europe (PMEU) | LobbyFacts Database" (in en). https://lobbyfacts.eu/representative/7ea6e0b07590486a8b8069a801d51c3b/positive-money-europe. 
  20. ↑ Hauke, Fiona (2023-01-01) (in en). Winning Hearts and Minds—How Central Banks went green. Springer Nature. ISBN 978-3-658-40242-6. https://www.google.com/books/edition/Winning_Hearts_and_Minds_How_Central_Ban/QdSkEAAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+-mindset&pg=PA44&printsec=frontcover. 
  21. ↑ Hauke, Fiona (2023-01-01) (in en). Winning Hearts and Minds—How Central Banks went green. Springer Nature. ISBN 978-3-658-40242-6. https://www.google.com/books/edition/Winning_Hearts_and_Minds_How_Central_Ban/QdSkEAAAQBAJ?hl=en&gbpv=1&dq=Positive+Money+Europe+Christine+Lagarde&pg=PA45&printsec=frontcover. 
  22. ↑ Brummer, Chris (2019) (in en). Cryptoassets: Legal, Regulatory, and Monetary Perspectives. Oxford University Press. ISBN 978-0-19-007731-0. https://www.google.com/books/edition/Cryptoassets/_F-pDwAAQBAJ?hl=en&gbpv=1&dq=Ben+Dyson+Central+Bank+Digital+Currency&pg=PA366&printsec=frontcover. 
  23. ↑ "Ben Dyson" (in en). https://www.pointzeroforum.com/speakers/spkr3119-ben-dyson. 
  24. ↑ Reporter, Financial. "Bank of England instructed to align monetary policy with net zero target" (in en). https://www.financialreporter.co.uk/finance-news/bank-of-england-instructed-to-align-monetary-policy-with-net-zero-target.html. 
  25. ↑ Thompson, Simon (2023-03-03) (in en). Green and Sustainable Finance: Principles and Practice in Banking, Investment and Insurance. Kogan Page Publishers. ISBN 978-1-3986-0925-9. https://www.google.com/books/edition/Green_and_Sustainable_Finance/CZavEAAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+-mindset&pg=PA401&printsec=frontcover. 
  26. ↑ Aspers, Patrik; Dodd, Nigel (2015) (in en). Re-imagining Economic Sociology. Oxford University Press. ISBN 978-0-19-874846-5. https://www.google.com/books/edition/Re_imagining_Economic_Sociology/gokSDAAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+-mindset&pg=PA89&printsec=frontcover. 
  27. ↑ (in German) Daniel Eckert, "Der Krieg um das sichere Geld der Zukunft", Die Welt, 12 January 2014 (page visited on 23 February 2018).
  28. ↑ Pettifor, Ann (2017-02-21) (in en). The Production of Money: How to Break the Power of Bankers. Verso Books. ISBN 978-1-78663-136-7. https://www.google.com/books/edition/The_Production_of_Money/_W7nDwAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+money+creation&pg=PT113&printsec=frontcover. 
  29. ↑ Dodd, Nigel (2016-02-09) (in en). The Social Life of Money. Princeton University Press. ISBN 978-0-691-16917-0. https://www.google.com/books/edition/The_Social_Life_of_Money/2W2YDwAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+-mindset&pg=PR12&printsec=frontcover. 
  30. ↑ Spek, R. J. van der; Leeuwen, Bas van (2018-05-15) (in en). Money, Currency and Crisis: In Search of Trust, 2000 BC to AD 2000. Routledge. ISBN 978-1-351-81050-0. https://www.google.com/books/edition/Money_Currency_and_Crisis/3E9bDwAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+-mindset&pg=PT35&printsec=frontcover. 
  31. ↑ Glaser, Eliane. "Nation-states aren't households: debating their economies as if they are is stupid". New Statesman. http://www.newstatesman.com/politics/2015/03/nation-states-arent-households-debating-their-economies-if-they-are-stupid. 
  32. ↑ Carlen, Pat; França, Leandro Ayres (2019-07-11) (in en). Justice Alternatives. Routledge. ISBN 978-0-429-88683-6. https://www.google.com/books/edition/Justice_Alternatives/SeChDwAAQBAJ?hl=en&gbpv=1&dq=%22Modern+Monetary+Theory%22+%22Positive+Money%22&pg=PA2015&printsec=frontcover. 
  33. ↑ Fuders, Felix (2023-10-11) (in en). How to Fulfil the UN Sustainability Goals: Rethinking the Role and Concept of Money in the Light of Sustainability. Springer Nature. ISBN 978-3-031-37768-6. https://www.google.com/books/edition/How_to_Fulfil_the_UN_Sustainability_Goal/OIDcEAAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+-mindset&pg=PA248&printsec=frontcover. 
  34. ↑ Martinez, Raoul (2017-01-31) (in en). Creating Freedom: The Lottery of Birth, the Illusion of Consent, and the Fight for Our Future. Knopf Doubleday Publishing Group. ISBN 978-0-307-91165-0. https://www.google.com/books/edition/Creating_Freedom/ia5QCwAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+-mindset&pg=PT416&printsec=frontcover. 
  35. ↑ Constancio, Vitor (7 July 2016). "Challenges for the European banking industry" (in en). https://www.ecb.europa.eu/press/key/date/2016/html/sp160707_1.en.html. 
  36. ↑ "BoE reform needed to boost firepower for downturns, think tank says" (in en). 2019-10-22. https://www.euronews.com/2019/10/22/boe-reform-needed-to-boost-firepower-for-downturns-think-tank-says. 
  37. ↑ "ECB Needs More Scrutiny From European Parliament, Report Says". Bloomberg.com. 9 April 2019. https://www.bloomberg.com/news/articles/2019-04-09/ecb-needs-more-scrutiny-from-european-parliament-report-says. 
  38. ↑ Strauss, Delphine (14 May 2018). "Bank of England urged to focus on green objectives" (in en-GB). https://www.ft.com/content/e19a1f90-5792-11e8-b8b2-d6ceb45fa9d0. 
  39. ↑ Chrispin, Sebastian. "Reality Check: Could the Greens change how money works?". BBC. Archived from the original on 30 November 2016. https://web.archive.org/web/20161130072041/http://www.bbc.co.uk/news/election-2015-32592671. 
  40. ↑ "Climat : le Parlement européen encourage la BCE à faire sa révolution" (in fr). 2020-02-12. https://www.lesechos.fr/finance-marches/banque-assurances/climat-le-parlement-europeen-encourage-la-bce-a-faire-sa-revolution-1171123. 
  41. ↑ "ECB Encouraged to Create New Green Bank-Lending Program" (in en). Bloomberg.com. 2020-09-22. https://www.bloomberg.com/news/articles/2020-09-22/ecb-encouraged-to-create-new-green-bank-lending-program. 
  42. ↑ Fabrice Anselmi, La fin des TLTRO pourrait préfigurer des opérations de «refinancements verts», L'Agefi.fr
  43. ↑ Wandhöfer, Ruth; Nakib, Hazem Danny (2023-04-21) (in en). Redecentralisation: Building the Digital Financial Ecosystem. Springer Nature. ISBN 978-3-031-21591-9. https://www.google.com/books/edition/Redecentralisation/pve6EAAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+cbdc&pg=PA117&printsec=frontcover. 
  44. ↑ Carabellese, Pierre de Gioia; Giustina, Camilla Della (2024-06-28) (in en). Banking Law and Financial Regulation in the UK and EU: Technology, Human Rights and Crises. Taylor & Francis. ISBN 978-1-040-04314-1. https://www.google.com/books/edition/Banking_Law_and_Financial_Regulation_in/K2IHEQAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+digital+euro&pg=PT333&printsec=frontcover. 
  45. ↑ Geyer, Robert; Cairney, Paul (2015-05-29) (in en). Handbook on Complexity and Public Policy. Edward Elgar Publishing. ISBN 978-1-78254-952-9. https://www.google.com/books/edition/Handbook_on_Complexity_and_Public_Policy/Md8WCQAAQBAJ?hl=en&gbpv=1&dq=%22Positive+Money%22+instability&pg=PA450&printsec=frontcover. 
  46. ↑ Ingham, Geoffrey (2020-01-08) (in en). Money. John Wiley & Sons. ISBN 978-1-5095-2685-7. https://www.google.com/books/edition/Money/YnDJDwAAQBAJ?hl=en&gbpv=1&dq=%22positive+money%22+credit+shortage&pg=PA2015-IA5&printsec=frontcover. 
  47. ↑ Korzeb, Zbigniew; Niedziółka, Paweł; Liuhto, Kari; Bryc, Agnieszka; Niedziółka, Dorota; Mróz, Maciej (2024-04-12) (in en). Fossil Fuels in the European Union: Geopolitical Change, Climate Policy and Financing Conditions. Springer Nature. ISBN 978-3-031-56790-2. https://www.google.com/books/edition/Fossil_Fuels_in_the_European_Union/3-IBEQAAQBAJ?hl=en&gbpv=1&dq=%22positive+money%22+green&pg=PA151&printsec=frontcover. 



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