Where Does Money Come From?, co-authored by Positive Money’s resident expert Andrew Jackson, explains exactly how money is created in the UK, based on over 500 original documents from the Bank of England and other banking authorities. With a foreword by one of the leading authorities in banking, Prof Charles Goodhart, this is the most comprehensive and authoritative guide to how money is created ever published, and reveals that most of the textbooks are very much out of date.
The basic analysis of this book is neither radical nor new. In fact, central banks around the world support the same description of where new money comes from.
And yet many naturally resist the notion that private banks can really create money by simply making an entry in a ledger. Economist J. K. Galbraith suggested why this might be:
“The process by which banks create money is so simple that the mind is repelled. When something so important is involved, a deeper mystery seems only decent.”
This book aims to firmly establish a common understanding that commercial banks create new money. There is no deeper mystery, and we must not allow our mind to be repelled. Only then can we properly address the much more significant question:
Of all the possible alternative ways in which we could create new money and allocate purchasing power, is this really the best?
More information about the Positive Money movement can be found at their website – www.positivemoney.org.uk