These changes could also reduce household debt. In the current system, new money is only created when banks lend. Banks will only lend if someone is willing to go into debt. That is why the government wants to fuel growth by encouraging more household borrowing. But with household debt at its highest level in history, any further increase could lay the foundations for another financial crisis. Only the Bank of England has the ability to create new money without having to wait for someone to go into debt.The post Change to UK’s money system could solve our long-term economic problems appeared first on BSNEWS.
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