PUBLICLY CREATED MONEY AND MONETARY REFORM

Early day motion 854, tabled 10 March 2003 by David Chaytor (Labour). Signed by 29 members.

That this House, concerned at the rising burden of private debt, public borrowing, student borrowing and public-private finance initiatives, notes that the proportion of publicly created money in circulation has fallen from 20 per cent. of the money supply in 1964 to 3 per cent. today; believes that increasing the proportion of publicly created money in issue could provide a new means of financing public investment; further notes that the use of publicly created money can significantly reduce the cost of public investment by eliminating the need to pay interest; accepts that such a policy can be adopted without any impact on inflation if suitable regulatory changes are made; and therefore calls upon the Government and the Treasury Committee to commission and publish independent reviews on the procedures for and benefits of increasing the proportion of publicly created money in the economy.

Signatures by party: Labour 21, Labour/Co-operative 3, Liberal Democrat 3, Plaid Cymru 2.