Public versus Private Sector Money Creation: Society Enhancing Monetary Reform
Nearly all money in the US, UK and many other countries is created by the private sector through lending. Private sector money creation provides many benefits, but also imposes large costs on society. Transitioning to public sector money creation can provide equal or better inflation control, econom...
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| Format: | Article |
| Language: | English |
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Risk Institute, Trieste- Geneva
2021-06-01
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| Series: | Cadmus |
| Online Access: | https://cadmusjournal.org/article/volume-4/issue-4/enhancing-monetary-reform |
| Summary: | Nearly all money in the US, UK and many other countries is created by the private sector through lending. Private sector money creation provides many benefits, but also imposes large costs on society. Transitioning to public sector money creation can provide equal or better inflation control, economic prosperity, credit availability and monetary value stability. It also can substantially reduce taxes, deficit spending and national debt, while significantly increasing funds available for essential public investments. High complexity often makes it difficult for citizens to understand monetary systems. Lack of public awareness keeps current systems in place. This paper provides a big picture overview of fiat monetary systems, with the goal of facilitating a transition to public sector money creation. The paper is based on the
book Global System Change: A Whole System Approach to Achieving Sustainability and Real Prosperity. The book identifies practical system changes in all areas of society, including money creation. This paper provides several US examples. But the suggested transition to public sector money creation is important and relevant for all countries that allow the private sector to create national fiat currencies. |
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| ISSN: | 2038-5242 2038-5250 |