|
|
Dear John,
Government spending has shot up to tackle coronavirus. This was the right decision by Chancellor Rishi Sunak, but what we absolutely must avoid is another decade of crippling austerity. In the past, politicians used high levels of public debt to justify harsh spending cuts while denying there was any alternative. But the Bank of England has a unique power to stop this: direct monetary financing.
If the Bank bought bonds directly from the government, then the Treasury would be able to spend without falling further into debt, and wouldn't have any excuse to claw that spending back with draconian austerity measures once this crisis is over. But there's a giant obstacle standing in the way: Bank of England governor Andrew Bailey.
In yesterday’s Financial Times, Bailey wrote the Bank will not do direct monetary financing. [1] This is short-sighted and dangerous. To kickstart our campaign to reverse Bailey’s decision we’ve made a video demanding he use the Bank’s most powerful weapon to fight this crisis. The next step? Build public support for it.
John, help stop coronavirus spending from becoming a future debt burden by sharing our new video now. It’ll take less than a minute. |
|
|
The Bank of England is already using its power to create new money to buy government debt from private financial institutions. [2] But the truth is, we don’t have to rely on private money markets to finance our public spending. By adopting direct monetary financing, the Bank would help bust this outdated ideological money myth once and for all.
Positive Money has been at the forefront of the public money creation debate for years. [3] And now that support for direct monetary financing is building across the political and economic spectrum, with former Bank of England deputy governor Charlie Bean the most recent convert, time has never been more ripe for our ideas. [4]
Please John, join the campaign for direct monetary financing and share our video today! |
|
|
Covid-19 risks causing the biggest economic crisis of our lifetimes, and direct monetary financing is one of the best tools we have to prevent it. This is just the start of Positive Money’s campaign to reverse Bailey’s decision and make sure the Bank of England fulfils its mandate to promote the good of the people, so keep an eye out for our next move. Many thanks for all that you do,
Hannah, Zack and the rest of the Positive Money team [1] Andrew Bailey: Bank of England is not doing ‘monetary financing’ https://www.ft.com/content/3a33c7fe-75a6-11ea-95fe-fcd274e920ca [2] To Help Fight Covid-19 the Bank of England must commit to direct monetary financing [3] Monetary medication for when next crisis hits UK https://www.ft.com/content/c763d2f8-1b21-11e9-b93e-f4351a53f1c3 [4] Print money to fund coronavirus battle: Former Bank of England deputy Sir Charlie Bean says normal rules of quantitative easing should be scrapped during crisis
|
|
Positive Money relies on donations from generous individuals like you to carry out our research, education work and campaign for a fairer money and banking system. |
|
FOLLOW US ON SOCIAL MEDIA |
|
