KPMG Iceland releases a new report on Sovereign Money.

Yesterday, KPMG Iceland released a new report entitled “Money Issuance: Alternative Monetary Systems”. Although the report doesn't make any recommendations, it provides an overview of the sovereign money proposal (full reserve banking) and discusses political developments in this field.

The full report can be seen at http://ift.tt/2c2Yk3u

Már Guðmundsson, the Governor of the Central Bank of Iceland, criticized the proposal listing concerns such as:

• “Monetary financing for government is usually the main cause of runaway inflation”.
• How to stop the expansion of the shadow banks?
• Would such a reform be compatible with the fact that Iceland is a member of the European Economic Area (EEA)?

At a launch event in Reykjavik however, Financial Times’ chief economists commentator Martin Wolf spoke in favour of the proposal pointing out that sovereign money would:

• Reclaim seigniorage (the proceeds of creating money) for the public benefit
• Create a more stable financial system
• Limit the ability of banks to ‘extract rent’ (i.e. extract wealth from the economy rather than generating it)
• Stop pushing up house price bubbles
• Have a much stronger impact on stimulating the economy than current measures like QE.

An overview of the report and debate has been written by Ben Dyson (of Positive Money fame): http://ift.tt/2c2ZCeT

via International Skeptics Forum http://ift.tt/2bSVK2k