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When commercial banks issue loans to customers, they create money by issuing deposits on the current account of the customer. Proposals for adoption of alternative systems, where a central bank would issue new money, such as the Sovereign Money (SM) system, have gained momentum in recent years.
Commissioned by Iceland’s Prime Minister’s Office, KPMG has laid out the fundamentals of the SM system and conducted a review of public discussions, political coverage and field of academics over the last years.
Money matters. Money is created, money is destroyed. Money is spent, money is earned. Money is borrowed, money is lent. Money is debt that creates income. Money divides us, money unites us. Money is a social, a political and a juridical relationship. We cannot escape it. More information and registration on the website of […]