Frequently Asked Questions
Won't your reforms be bad for business?
Why credit controls?
Won't these regulations undermine the banking sector's ability to provide the economy with access to credit, thereby harming the economy?
Where does the name "Our Money" come from?
“Our Money” refers to our belief in the importance of recognizing that the money created by the government as well as by banks and other private financial institutions is fundamentally public in nature and therefore, our money. This is the basis of what we see as the strongest political and moral justification for asserting public control over the power of money creation — if it is our money, we should be able to say how it is allocated.
What about the interest we pay on the national debt?
What about shadow banking?
Isn't money creation hyperinflationary?
Contrary to popular belief, money creation is not a rare occurrence that is hyperinflationary whenever it takes place. As we say elsewhere, money creation is as common as dirt, and is performed everyday by the government as well as by banks and other financial institutions. Irresponsible money creation however can be part of a dynamic that creates hyperinflation. Actual cases of hyperinflation are generally, if not always, the result of deeper political and economic crises.
Doesn't money need to be backed by gold?
No. The past several decades since the collapse of the gold standard in 1971 shows definitively that money need not be backed by gold in order to retain its ability to function as a medium of exchange, store of value, unit of account and means of settlement. The idea that money must be backed by gold is a relic of the gold standard era. It is key in order to take advantage of the opportunities presented by the post-gold standard era that we get beyond this kind of thinking.
Isn't it irresponsible for the government to spend more than it collects in taxes?
Actually it is irresponsible for a government that creates its own currency not to spend more than it collects in taxes. By spending more than it collects in taxes the government provides the economy with a money supply that is created through public spending rather than private lending. This reduces the economy’s reliance on private borrowing and allows the government to better attend to public priorities.