Saturday, December 26, 2020

How Money is Created in the UK — NeilW

For the past few months I’ve been working with Andrew Berkeley and Richard Tye helping them complete “An Accounting Model of the UK Exchequer” which has been published online by GIMMS as a working document.

The study is a tour-de-force of research and history by Andrew and Richard, and I’m very grateful to have been invited in to assist with the accounting and systemic analysis of the structures that lie at the heart of the UK monetary system and add my little bit to the document. However I do stand on the shoulders of giants.

The study proves conclusively that the source of ‘moneyness’ in the UK is the Consolidated Fund, and that the whole of the Sterling currency area derives from its activities - to the extent that we can show that the ‘net financial wealth’ of the non-government sector that arises from the MMT viewpoint is precisely balanced by a ‘sui generis’ asset that sits on the balance sheet of the Consolidated Fund. A balance sheet that is never fully drawn up anywhere....
New Wayland Blog
How Money is Created in the UK

Here is the paper (161 pages).

The Gower Initiative
An Accounting Model of the UK Exchequer
Andrew Berkeley, Richard Tye, Neil Wilson
See also

Tax Research UK
Accounting and the UK Exchequer
Richard Murphy | Professor of Practice in International Political Economy at City University, London; Director of Tax Research UK; non-executive director of Cambridge Econometrics, and a member of the Progressive Economy Forum

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