Thank you for contacting me about the Positive Money campaign group and the issue of money creation.
The Government has set out its position on the issues raised by those who advocate change to our monetary system, such as those who support the Positive Money campaign. This included highlighting what factors already limit money creation and lending, alongside wider comments on the failure of the previous regulatory regime that oversaw the financial crises and what was done to address these.
It is important to note that without the Bank of England’s intervention after the financial crisis, most people in the United Kingdom would have been worse off. Economic growth would have been lower, unemployment would have been higher and many more would have gone out of business, taking the jobs and livelihoods of many families with them. This would have had a significant detrimental impact on savers and pensioners along with every other group in society.
I do not believe the solution to the problems highlighted by proponents of an alternative money system is the wholesale replacement of the current system by something else, such as a sovereign monetary system that is advocated by some.
Thank you again for taking the time to contact me.