CREATING NEWMONEY CREATING NEW MONEY
Joseph Huber & James RobertsonJoseph Huber & James Robertson
CREATING NEW MONEY
The existing money system is out of date.
In modern democratic societies, the value
created by issuing new money should be a
common, not a private, resource. New money
should be put into circulation as public
spending, not as profit-making loans by
commercial banks. In Britain, the result would
be equivalent to 12p off income tax. Other
countries would benefit comparably.
In the information age, money has mainly
become information, electronically stored and
transmitted. Monetary policies that serve the
public interest can no longer be founded on a
smoke-and-mirrors fiction that “real money”
lurks behind the information.
The authors propose a simple reform, and spell
out its practicalities step-by-step. The economic,
social and environmental arguments for it are
very strong. The public purse, private households
and businesses will all benefit from it.
How can the money system be made to work
better? How can its workings be made less
mysterious – easier for politicians and citizens
to understand? This report gives the answers.
ISBN: 1 899407 29 4
A monetary reform for the information age
The New Economics Foundation (NEF) was founded in
1986 by the leaders of The Other Economic Summit
(TOES), which has forced issues such as international debt
on to the agenda of the G7/G8 summit meetings. It has
taken a lead in helping establish new coalitions and
organisations, such as the Jubilee 2000 debt relief
campaign, the Ethical Trading Initiative, backed by the
Government and leading retailers, the UK Social
Investment Forum and the Green Gauge “alternative”
indicators of social and environmental progress.
NEF is a registered charity, funded by individual supporters,
trusts, business, public finance and international donors,
and acting through policy, research, training and practical
initiatives to promote a “new” economy – one which is
people-centred, delivers quality of life and respects