Positive Money

Positive Money is a not-for-profit advocacy and research organisation based in London, with a related presence in Brussels, that campaigns for changes to the way money is created, regulated and directed through the economy. It emerged in the aftermath of the 2008 financial crisis, when concerns about bank-created credit, financial instability, housing unaffordability and widening inequality helped bring monetary-system design into wider public debate. Ben Dyson founded the organisation in 2010, initially giving it a strong focus on the mechanics of money creation and on the case for replacing the conventional banking model in which commercial banks create most new money when they issue loans. The organisation's historical core proposal is often described as a sovereign-money system. Under this approach, commercial banks would no longer create new money through credit creation in the same way, while the central bank would regain a more direct monetary-creation role. Positive Money has argued that newly created money could be directed toward public investment, government spending or payments to citizens, depending on the institutional design. The proposal resembles aspects of full-reserve or narrow banking, but Positive Money has presented it as a broader restructuring of the relationship between commercial-bank deposits and central-bank money. Under Fran Boait, who became executive director in 2013, Positive Money expanded beyond its original long-term structural reform agenda. Its policy work increasingly addressed measures that could be implemented within existing monetary institutions, including public or socially directed forms of quantitative easing, so-called helicopter money, stronger central-bank accountability, reform of monetary-policy governance, green quantitative easing, climate-sensitive collateral rules, credit guidance and central-bank digital currencies. The organisation has also supported the development of a digital pound in the United Kingdom and a digital euro in the euro area, subject to suitable public-interest safeguards. Positive Money has combined policy research with public education, petitions, demonstrations and engagement with legislators, central banks and international networks. It helped establish the International Movement for Monetary Reform in 2013 and later developed a European campaign presence. In 2015 it launched a euro-area campaign advocating that quantitative easing should benefit households and public investment rather than primarily raise the prices of financial assets. Positive Money Europe was formally established in 2018 to focus campaigns on the European Central Bank and European Parliament. The organisation's arguments have attracted interest from campaigners, economists and policy professionals, while also drawing criticism. Opponents of sovereign-money proposals contend that removing or substantially restricting commercial banks' capacity to create money could reduce the supply of credit, impair investment and encourage lending to migrate into less-regulated shadow-banking institutions. Positive Money's more incremental proposals, especially those concerning climate alignment, central-bank accountability and digital money, have generally been easier to connect with mainstream policy discussions. The Bank of England's decision announced in 2021 to incorporate environmental considerations into its corporate quantitative-easing programme was cited by the organisation as evidence that campaigning had helped move climate issues into monetary-policy debate. Positive Money remains an active advocacy organisation rather than a bank, investment firm or commercial financial-services provider.

Positive Money was founded in London in 2010 by Ben Dyson in the political and economic aftermath of the global financial crisis. Its starting point was the observation that most money in a modern economy is created when commercial banks extend credit, rather than being issued directly by the state or central bank. The organisation argued that this structure could encourage excessive private debt, asset-price inflation and financial instability, while directing newly created purchasing power toward activities that may worsen housing costs, inequality and environmental pressure. During its early period, Positive Money concentrated on public education and advocacy for a fundamental change to the United Kingdom's monetary architecture. Its central proposal was a sovereign-money system under which private banks would no longer create money through lending in the conventional manner. The Bank of England would instead have a monopoly over the creation of new money, with decisions about its use subject to an appropriate public and institutional framework. Possible channels discussed by the organisation included financing public expenditure, supporting public investment or distributing newly created money directly to citizens. The proposal shared features with full-reserve and narrow-banking ideas, although Positive Money described its model as an integrated system in which commercial-bank deposits and central-bank money would no longer operate as separate forms of circulating money. Fran Boait became executive director in 2013, after which the organisation broadened its programme. It continued to support long-term monetary reform but also developed proposals aimed at existing institutions and near-term policy choices. These included forms of monetary-fiscal cooperation, public-interest quantitative easing, helicopter-money approaches, stronger accountability for the Bank of England and European Central Bank, and changes to the way central banks assess collateral and allocate support. Positive Money also argued that monetary policy should take climate risks seriously and should not systematically favour carbon-intensive assets. The organisation used a mixture of research, policy engagement and public mobilisation. In addition to publishing reports and educational material, it organised demonstrations near the Bank of England, promoted petitions and sought meetings with policymakers. In 2013 it helped establish the International Movement for Monetary Reform, connecting it with similar organisations in other countries. In 2015 it broadened its international work through a euro-area campaign called Quantitative Easing for the People. The campaign challenged the distributional effects of conventional asset purchases and advocated mechanisms that would provide more direct support to households, public services or green investment. Positive Money subsequently developed a formal Brussels presence as a lobby group engaging with European Union institutions. Positive Money Europe was established in 2018 to focus more directly on the European Central Bank and European Parliament. Its activities included work on monetary-policy accountability, the design of the euro area's asset-purchase programmes and the possible introduction of a digital euro. In December 2019, representatives met ECB President Christine Lagarde. The organisation also became active in debates over central-bank digital currencies in the United Kingdom. Founder Ben Dyson joined the Bank of England as a researcher in 2016 and later worked at the Bank for International Settlements on cross-border payment infrastructure, including Project Nexus. Climate policy became increasingly prominent in Positive Money's agenda. The organisation advocated green quantitative easing and related changes to central-bank collateral frameworks, refinancing programmes and credit guidance. In early 2021, the Bank of England announced that its corporate quantitative-easing operations would include environmental considerations. Positive Money presented this as a policy development consistent with campaigning that had pressed central banks to recognise the climate consequences of their balance-sheet operations. Positive Money's proposals have remained contested. Supporters say that the organisation identifies structural links between bank-created money, debt dependence, instability, inequality and ecological damage. Critics argue that a sovereign-money transition could constrain credit availability, weaken investment or shift financial intermediation into a less regulated shadow-banking sector. The organisation's more practical proposals, including climate-sensitive monetary policy, digital public money and improved central-bank accountability, have generally generated broader engagement than its most radical institutional reforms. Positive Money remains an advocacy and research group, not a deposit-taking bank or commercial financial institution.

• 2021

  Climate considerations enter the Bank of England's corporate QE programme

  [1]Positive Moneyen.wikipedia.org

  The Bank of England announces environmental considerations for its corporate quantitative-easing operations after sustained advocacy around green monetary policy.

• 2018

  Positive Money Europe is formally created

  [1]Positive Moneyen.wikipedia.org

  The European organisation is established to campaign toward the European Central Bank and European Parliament.

• 2016

  Founder moves to the Bank of England

  [1]Positive Moneyen.wikipedia.org

  Ben Dyson joins the Bank of England as a researcher and continues work related to central-bank digital currencies.

• 2015

  European quantitative-easing campaign begins

  [1]Positive Moneyen.wikipedia.org

  The organisation starts a euro-area campaign arguing that quantitative easing should deliver more direct benefits to people and public investment.

• 2013

  Fran Boait becomes executive director

  [1]Positive Moneyen.wikipedia.org

  Leadership changes coincide with a broader programme combining long-term monetary reform with pragmatic central-bank and fiscal-policy proposals.

• 2013

  International monetary-reform network is launched

  [1]Positive Moneyen.wikipedia.org

  Positive Money helps establish the International Movement for Monetary Reform.

• 2010

  Positive Money is founded

  [1]Positive Moneyen.wikipedia.org

  Ben Dyson establishes Positive Money in London in response to the financial crisis, initially focusing on money creation and sovereign-money reform.

An independent public-interest campaign organisation focused on monetary-system design, central-bank policy and the distributional and environmental consequences of finance.

• Research and policy advocacy · 2010

  Sovereign-money research

  Positive Money's foundational body of work examines how commercial-bank lending creates deposits and proposes transferring primary money-creation authority to the central bank. Its materials connect monetary design with private debt, financial instability, housing affordability and inequality. The organisation presents sovereign money as a structural alternative rather than as a conventional commercial product.

• Public campaign · 2015

  Quantitative Easing for the People

  This campaign challenged the distributional effects of conventional quantitative easing, arguing that asset purchases can disproportionately benefit holders of financial assets. It promoted alternatives in which central-bank-created money would reach households, public services or public and green investment more directly, especially in the euro area.

• Policy advocacy

  Green monetary policy

  Positive Money's climate programme calls for monetary policy and central-bank balance-sheet operations to account for climate risk. Proposals include greening collateral frameworks, directing refinancing support toward lower-carbon activity, using credit guidance and considering environmental criteria in asset-purchase programmes.

• Digital-currency advocacy

  Central-bank digital currency policy

  The organisation researches and campaigns on public digital money, supporting consideration of a UK central-bank digital currency and a digital euro. Its work focuses on design, accountability, financial inclusion, privacy and the public-interest role of digital payment infrastructure.

• 2015Quantitative Easing for the People

  Eurozone · European Union

  The campaign argued that euro-area quantitative easing should support households, public investment and the wider economy more directly instead of mainly increasing the value of financial assets.

  Outcome. It established Positive Money's more visible European campaign presence and helped frame distributional and social questions around central-bank asset purchases.

  Source
• 2013International Movement for Monetary Reform

  International

  Positive Money helped create an international network for organisations advocating reforms to money creation and monetary institutions.

  Outcome. The network expanded the organisation's international connections and provided a platform for coordinated monetary-reform advocacy.

  Source
• Green quantitative easing

  United Kingdom · European Union · Europe

  Positive Money has advocated aligning central-bank asset purchases, collateral rules and refinancing operations with climate objectives, including preferential treatment for environmentally sustainable economic activity.

  Outcome. The campaign contributed to policy debate about the environmental effects of central-bank balance sheets; the Bank of England later announced environmental considerations for its corporate quantitative-easing programme.

  Source

• 2018

  Create Positive Money EuropeStrategy

  Background

  The organisation had expanded its euro-area work and registered as a lobby group with European Union institutions.

  Action taken

  Positive Money formally created a European entity in Brussels focused on the European Central Bank and European Parliament.

  Aftermath

  The European arm became a vehicle for campaigns on quantitative easing, central-bank accountability, climate policy and digital-euro design.

  Source

• 2013

  Broaden the agenda toward pragmatic monetary policyStrategy

  Background

  Following Fran Boait's appointment as executive director, Positive Money sought to complement structural reform with proposals that could be considered within existing institutions.

  Action taken

  The organisation expanded its work into public-interest quantitative easing, helicopter money, central-bank governance, climate alignment and digital currencies.

  Aftermath

  Its campaigning reached a wider policy audience and moved beyond the single question of abolishing commercial-bank money creation.

  Source

• 2010

  Adopt sovereign money as the foundational reform proposalStrategy

  Background

  The organisation was created after the financial crisis amid concerns about commercial-bank money creation, private debt, asset inflation and financial instability.

  Action taken

  Positive Money developed and promoted a system in which the central bank would control the creation of new money and commercial banks would no longer create deposits through ordinary lending in the same way.

  Aftermath

  The proposal became the organisation's defining long-term policy position and generated debate among economists, central bankers and financial-policy commentators.

  Source

1. 1Positive Moneyen.wikipedia.org
2. 2Positive Money official websitepositivemoney.org