Mark Carney: “There will be a change” in “unsustainable” monetary system
Channel: Positive Money
Date: 2019-09-12

http://www.positivemoney.org/

Bank of England policymakers Mark Carney, Andy Haldane and Gertjan Vlieghe are questioned on the sustainability of the current monetary system by Steve Baker MP during a Treasury Select Committee evidence session, 4/11/2019.

 Carney said:

“There will be a change, measured over decades. It is very hard to predict. That which is unsustainable tends to go on for longer than you think and then happen more quickly than you expect, to paraphrase Rudi Dornbusch, but these structural flaws, in the end, in the system will ultimately result in a change.”

Carney has proposed a ‘synthetic hegemonic currency’ as a possible basis for a new global monetary system. This would be comprised of a number of central bank digital currencies (CBDCs), as put forward by Positive Money. A CBDC would provide a trusted public alternative to private banks’ monopoly on electronic money, and would move us towards a system where commercial banks are not freely able to create new money as debt, as they currently do to massive negative economic, social and environmental consequences.

Carney said the introduction of such CBDCs would “be to the benefit of citizens and businesses”, and is a reform to the monetary system which “could happen.” In fact the Bank of England is currently exploring the idea.

Andy Haldane, the Bank’s chief economist, said that such an idea “is definitely towards the ambitious end of the spectrum”, but added “now is the time for ambition on these big issues.” We at Positive Money definitely agree and stand ready to match ambition with workable policy solutions.

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Positive Money is a not-for-profit research and campaign group. They campaign for a fair, democratic and sustainable money system. 
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