GROWING SUPPORT for INQUIRY into PUBLICLY CREATED MONEY

and MONETARY REFORM

26 MPs from three political parties have now signed House of Commons Early Day Motion 854 which calls upon the Government and the Treasury Committee to commission and publish independent reviews on the procedures for and benefits of increasing the proportion of publicly created money in the UK economy.

Similar Early Day Motions have been tabled in the House in earlier parliamentary sessions and there is a steady increase in support being shown year by year for such a fundamental review of how the government finances its activities in view of the pressing problems it faces in the light of demand for low taxes and high quality public services.

The Motion, sponsored by Labour MP David Chaytor draws attention to the concerns of MPs about the rising burden of private debt, public borrowing, student borrowing and public-private finance initiatives. It also notes that the proportion of publicly created money in circulation has fallen from 20 per cent of the money supply in 1964 to 3 per cent today. In calling for a review into this trend it notes the strong academic arguments that have been put forward that suggest that increasing the proportion of publicly created money in issue could provide a new means of financing public investment. It also notes that the use of publicly created money can significantly reduce the cost of public investment by eliminating the need to pay interest on borrowing.

The motion has been backed by the Forum for Stable Currencies and has been signed by Labour, Liberal Democrat and Plaid Cymru MPs.  Richard Murphy said on behalf of the Forum “We are delighted that this call for a review is attracting increasing support amongst MPs. It is obvious that UK governments of whatever complexion will have a significant funding problem in the future if they are to continue to fund the level of public services the public say they want. The review this Motion calls for, and which these MPs support, is one way of solving that problem.”

Titus Alexander has worked on these issues for the Forum for Stable Currencies. He said “In view of the importance of this matter we are hopeful that The Treasury Committee of the House of Commons and the government itself might respond to the suggestion of a review into this form of financing”.

Ends

Notes to Editors

EDM 854 says:

PUBLICLY CREATED MONEY AND MONETARY REFORM

That this House, concerned at the rising burden of private debt, public borrowing, student borrowing and public-private finance initiatives, notes that the proportion of publicly created money in circulation has fallen from 20 per cent of the money supply in 1964 to 3 per cent today; believes that increasing the proportion of publicly created money in issue could provide a new means of financing public investment; further notes that the use of publicly created money can significantly reduce the cost of public investment by eliminating the need to pay interest; accepts that such a policy can be adopted without any impact on inflation if suitable regulatory changes are made; and therefore calls upon the Government and the Treasury Committee to commission and publish independent reviews on the procedures for and benefits of increasing the proportion of publicly created money in the economy.

A list of the MPs who have signed the motion is available at http://edm.ais.co.uk/weblink/html/motion.html/ref=854

The Forum for Stable Currencies promotes monetary and banking reform to Parliamentarians and concerned citizens through regular lecture series and debates held at the House of Lords. It can be contacted through Sabine McNeill on 020 7328 3701 or sabineXglobalnet.co.uk

A full technical briefing on this proposal is available from Sabine McNeill or Richard Murphy.

Richard Murphy can be contacted on 01353 645051 or rjmXfulcrum-uk.com