Recommendation: productive ‘quantitative easing’
Suleika Reiners is future finance policy officer for the World Future Council, Hamburg, whose members include Scilla Elworthy and Vandana Shiva. Part of her letter to the Financial Times is reproduced here:
“The task is to redirect central bank money into the real economy for the benefit of companies and people.
“When central banks adopt the amount of new money before any one budget year, the Treasury can take this into account and balance it with taxes and borrowing.
“Central bank money can, for example, act in partnership with institutional investors as a catalyst during the start-up phase of long-term infrastructure projects. Affordable financing will thereby become available.
“Central bank money can also finance a retraining of employees in the fossil fuel industry in order to enable them to carry out similar work in the renewable energy sector.
“In this way, new money can effectively address real financing needs”.
For many years Suleika has been working on financial markets which are meaningful in real economic terms, and which contribute to social justice and ecological sustainability. She has supported the work of two members of parliament in the German Bundestag for four years: from 2008 till October 2009 – at the beginning of the international financial and economic crisis – she was a research associate for Dr Axel Troost in financial market regulation, financial supervision and financial policy.