Positive Money

 ( Www.positivemoney.org Official Website ) 

Positive Money UK is a Not-for-Profit advocacy group based in London and Brussels that campaigns for monetary reform.Jason Douglas, "UK activist group emerges as voice for monetary reform", The Wall Street Journal, 19 August 2015 (page visited on 23 February 2018). Founded in 2010, the organization promotes central bank reforms and alternative monetary policy,

with a focus on what it terms "sovereign money" systems.

Geoffrey Ingham (2020). 9781509526857, John Wiley & Sons. . ISBN 9781509526857

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History Positive Money was founded in London by Ben Dyson in 2010 "Monnaie pleine : une opportunité en Suisse pour changer la monnaie" The, La revue durable, number 60, winter-spring 2017-2018, pages 26-29. 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,

Bart Stellinga (2021). 9783030702502, Springer Nature. . ISBN 9783030702502

focusing on how money is created in the economy.

Mary Mellor (2019). 9781447346289, Policy Press. . ISBN 9781447346289

Early work centered on education about fractional-reserve banking

Ester Barinaga Martín (2024). 9781529225372, Policy Press. . ISBN 9781529225372

and disconnecting private banks from money creation.

Keith Hart’s (2017). 9781785335600, Berghahn Books. . ISBN 9781785335600

Dyson criticized the banking sector's role in housing unaffordability,

Chris Clarke (2015). 9781317367888, Routledge. . ISBN 9781317367888

with financial instability leading to inequality.

Abdelrahman Elzahi Saaid Ali (2020). 9783030399351, Springer Nature. . ISBN 9783030399351

In 2013, Fran Boait became executive director,

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.

Positive Money also adopted new tactics such as rallies in front of the Bank of England and petitioning. In 2013, Positive Money initiated the International Movement for Monetary Reform, a worldwide network of likeminded organisations.

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

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.

Fiona Hauke (2023). 9783658402426, Springer Nature. . ISBN 9783658402426

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.

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."

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Proposals

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Sovereign money Positive Money's historical backbone proposal is to introduce a "sovereign money system".

Patrik Aspers (2025). 9780198748465, Oxford University Press. . ISBN 9780198748465

Daniel Eckert, "Der Krieg um das sichere Geld der Zukunft", Die Welt, 12 January 2014 (page visited on 23 February 2018). Under such a reform, private banks would be deprived from their ability to Money creation by extending credit into the economy.

Ann Pettifor (2017). 9781786631367, Verso Books. . ISBN 9781786631367

In turn, the Bank of England would regain the monopoly over money creation,

Nigel Dodd (2016). 9780691169170, Princeton University Press. . ISBN 9780691169170

R. J. van der Spek (2018). 9781351810500, Routledge. . ISBN 9781351810500

by financing the government's budget (monetary financing) or distributing a citizens' dividend ("helicopter money"). While some Positive Money advocates also endorse Modern Monetary Theory, MMT claims that money is already issued as sovereign currency.

Pat Carlen (2019). 9780429886836, Routledge. . ISBN 9780429886836

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."

Raoul Martinez (2017). 9780307911650, Knopf Doubleday Publishing Group. . ISBN 9780307911650

According to former ECB Vice-president Vitor Constancio, Positive Money's proposal "would not create enough funding for investment and growth."

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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 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.Fabrice Anselmi, La fin des TLTRO pourrait préfigurer des opérations de «refinancements verts», L'Agefi.fr
• Digital currency: the organisation propose implementing a central bank digital currency
  Ruth Wandhöfer (2023). 9783031215919, Springer Nature. . ISBN 9783031215919
  in the UK and supports the introduction of a digital euro by the ECB.
  Pierre de Gioia Carabellese (2024). 9781040043141, Taylor & Francis. . ISBN 9781040043141

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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.

Robert Geyer (2015). 9781782549529, Edward Elgar Publishing. . ISBN 9781782549529

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.

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

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See also

• 2018 Swiss sovereign-money initiative
• Chicago plan
• Sustainable finance
• Fractional-reserve banking
• Helicopter money
• Monetary financing
• Monetary Policy
• Monetary reform in Britain
• Monetary reform
• Money creation
• People's Quantitative Easing

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External links

• International Movement for Monetary Reform
• Sovereign Money Initiative (Switzerland)
• "Where Does Money Come From"

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