Lord Adair Turner on Money Creation and Banks

Jay OwenReforming Global Finance

 

Lecture, Cass Business School, February 6, 2013

 

At a lecture at London’s Cass Business School, Lord Adair Turner broke ranks and called for an end to allowing private banks to create the nation’s money: instead, turning this vital function over to the government as money-creator.  Turner proposed that governments can create new fiat money, interest-free, to re-start economies mired in private debt.   He would have central banks take securitized loans, such as student loans in the US, onto their  balance sheets and forgive the debt to stimulate the economy. 

 

Ethical Markets agrees!  — Editor

 

Lord Adair Turner is the retiring Chairman of Britain’s Financial Services Authority,financial regulator for the UK.  He is the author of Just Capital – The Liberal Economy(2001) and Economics After the Crisis (2012).

 Watch a video of the lecture.