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G20 Monetary Reform 2009 - Campaign Document

<< G20 Monetary Reform - Home Page

I have written a campaign document, which explains why monetary reform is needed and suggests some possible solutions. Please feel free to use it in any way. Click on the button below to download the pdf version (you can download the Word version here).

I give a more detailed explanation in the memorandum of evidence I submitted to Members of the House of Commons Parliamentary Select Committee on the Treasury on 2nd January, on National And International Financial Architecture: Two Proposals. The Committee has now given me permission to circulate it more widely. It can be downloaded from architecture.pdf. The Executive Summary includes the following points.

a) The money used by national and international monetary and financial systems provides the foundation for their architecture. Who creates and issues the money supply, and in what form, affects how those systems work and therefore how they should be regulated.

b) The ways money is now created, both for national and for international economies, combines conflicting functions. That is a cause of recurrent financial crises, and of other economically, socially and environmentally damaging outcomes.

c) The first proposal is for genuine nationalisation of the national money supply, making it unnecessary to nationalise commercial banks.

d) The second proposal is for genuine internationalisation of the international money supply. In other words, the UK government should be asked to consider promoting the introduction of a genuinely international currency.

e) As host government to the G20 meeting in London on 2nd April 2009, the UK government should put the two proposals on the agenda.

f) In the past two centuries distinguished leaders have supported the first proposal, for a genuinely nationalised national money supply. The second proposal, to introduce a new genuinely international currency alongside national ones, shares the underlying principle of Keynes' proposal at the Bretton Woods Conference in 1944, and the principles put forward by the Independent UN International Commission on Global Governance in 1995. It has recent support from the BRICs Group of countries.

g) Some experts in the complexities of existing financial architecture may dismiss these proposals as too radical and simple. But measures unthinkable a few months ago have now been taken in response to the present crisis. So I hope these commonsense proposals will not be dismissed out of hand. They are in tune with the UK's historic record of financial evolution in response to changing needs. Treating them seriously could increase the credibility of those responsible for public finance, at a time when people are looking for new solutions to the problems of the new financial world of today and tomorrow.

You can also find links to more articles about the money and financial systems here.