The State Issue of Currency without Usury

Peter Challen, Rodney Shakespeare, Simon Mouatt

    Research output: Chapter in Book/Report/Published conference proceedingChapterpeer-review

    Abstract

    We humans are in the midst of a potentially terminal economic, social and environmental crisis. In order to address that crisis this chapter outlines a proposal for the structural reform of a national monetary system, with practical and beneficial consequences. It is recognised, of course, that monetary reform per se is not a holistic panacea to all of our global ills. Yet, it is hoped that the incremental transition recommended, using the national bank to issue interest-free currency (credit-money), could promote the cause of social and economic justice through a more sustainable monetary system. In addition, interest-free currency could be used to finance other reform proposals such as the spread of capital ownership or the creation of a basic income. At the core of the reform is the insight that, usury (defined here as an interest-charge in excess of justifiable administration cost) is not necessary. Whilst it can be argued that administration charges, collateral and properly conceived repayment plans are imperative for the proper functioning of credit markets, usury is not so easily defended (especially for state expenditure) unless the motive is to profit the private financial sector and their investors
    Original languageEnglish
    Title of host publicationThe Corporate and Social Transformation of Money and Banking
    Subtitle of host publicationBreaking the Serfdom
    EditorsSimon Mouatt, Carl Adams
    Place of PublicationChippenham
    PublisherPalgrave Macmillan Ltd.
    Pages205-219
    Number of pages15
    Publication statusPublished - 2011

    Publication series

    NameStudies in Banking and Financial Institutions
    PublisherPalgrave Macmillan

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