The second week of May witnessed a fresh downward twist in the decline of cryptocurrencies since the autumn. On 12 May, the combined market value of all cryptocurrencies was reported to be $1.12trn. That’s about a third of the figure…
Tag: money
UK economy on the brink as Bank of England prepares for a public digital currency
UK Chancellor of the Exchequer Rishi Sunak has appointed a task force that will investigate the possibility of setting up a Central Bank Digital Currency (CBDC) as Britain’s response to the rise of Bitcoin and other forms of electronic money.…
Why the monetary system is not fit for purpose
The global monetary system is no longer fit for purpose and requires radical reform to promote sustainable and equitable economic development, independent consultant Shann Turnbull told the annual Association for Heterodox Economics conference in Glasgow last week. He said that…
Why banks should be stripped of their control of the electronic payments system
In economies where services are dominant — and service industries in the UK (including banking) account for more than 80 per cent of employment — the role of banks requires radical redefinition. Basic economic theory says that money serves three purposes: it’s…
The money test that economics fails
Monetary theory is a central element of economics. Its significance has risen since the monetarist counter-revolution led by Milton Friedman. And yet, the theory is profoundly unsatisfactory as even a cursory reading of basic text books will suggest. Conventional monetary fails…