PUBLICLY-CREATED MONEY

That this House is concerned at the growing difficulties of maintaining the higher levels of public spending on pensions, health, education and all the other public purposes an advanced society requires by taxation and public borrowing; notes that the proportion of publicly-created money in circulation has fallen from 20 per cent. of the money supply in 1964 to three per cent. today; believes that increasing the proportion of publicly-created money can provide a new means of financing public services; further notes that the use of publicly-created money can substantially cut the cost of public investment by eliminating the need to pay interest; considers that such a policy of using the public credit to finance public purposes can be adopted without any impact on inflation if suitable regulatory changes are made; and therefore urges the Treasury and the Treasury Select Committee to commission independent reviews on how to increase the proportion of publicly-created money in the economy and on the benefits of doing so and report them to this House.