Description
Positive Money is a not-for-profit advocacy group based in London and Brussels. Positive Money's mission is to promote a fair, democratic and sustainable economy through reforms of central banks and alternative monetary policy tools.
Positive Money was founded by Ben Dyson in 2010. Its current Executive Director is geophysicist Fran Boait.
History and activities
Positive Money has rallied in front of the Bank of England.
Positive Money is a member of the International Movement for Monetary Reform, a worldwide network of likeminded organisations. In 2015, Positive Money initiated a Eurozone-wide campaign on "Quantitative Easing for the People"
In May 2018, Positive money formally created a separate Brussels-based organisation called Positive Money Europe which is directing campaigns and advocacy 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 and its work has been praised by former ECB's chief economist Peter Praet.
Proposals
Positive Money's historical backbone proposal is to introduce a "sovereign money system". 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").
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." According to former ECB Vice-President Vitor Constancio, Positive Money's proposal "would not create enough funding for investment and growth."
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 and of the European Central Bank.
- Greening monetary policy: Aligning monetary policy with climate change objectives though reforms of central bank's collateral framework or forms of credit guidance such as green TLTROs.
- Digital currency: the organisation propose implementing a central bank digital currency in the UK and supports the introduction of a digital euro by the ECB.
