Positive Money NZ’s submission to Parliament’s Finance and Expenditure Select Committee proposes thinking differently about how new money is created, and that we use any new money for the wider public good.
How NZ’s debt-based money system creates problems of unfairness, high house price inflation, fragility in our banking system, and contributes to starving public services of vital funding.
Our proposed reforms would see all new money created debt-free by the Reserve Bank, with the benefits flowing to citizens in the form of a safer banking system, less debt, and more funding for public services.
At the core of our proposed system is ‘Sovereign Money’, a form of Central Bank Digital Currency (CBDC). This puts the Reserve Bank in control of all money to produce a safer, fairer banking system, and finally modernises a banking system that was built around paper-based processes.
There are two broad choices for the transition process – either a phased-in approach, or an immediate switch. Either approach could be implemented without disruption to the wider economy. And we’ve been here before. New Zealand used a similar approach in the 1930s to build the first state houses, fund infrastructure and new businesses.
The Government’s recent announcement that it will spend an extra $12 billion on infrastructure for new roading, rail, schools and healthcare projects, is welcome news. But there is a better way to fund it than to take on billions of dollars of debt.
A financial revolution has begun in California. The Governor, Gavin Newsom, has just signed #AB857 Public Banks into law, making it possible for California cities and counties to take control of their banking system through the creation of public banks. With public...
With our petition now in front of parliament and the Finance & Expenditure Select Committee, it’s a good time to revisit this recent interview with businessman and former New Plymouth mayor Andrew Judd. In it, Judd talks to Positive Money’s Hamish Allan and Stuart...
The Finance and Expenditure Select Committee has asked for a written submission to provide detail on the matters raised by our petition. This came as a pleasant surprise as we had been told that the Committee was very busy and may not be able to consider the petition...
Help us to achieve real change in our money system and make sure that it works for the public good not just for private profits.
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