finance

The reform of money for a new green economy

The reform of money for a new green economy

In the first part of our analysis we showed that the root cause of the constant, and ultimately unsustainable, pressure for economic growth might lie in money, specifically in the “way how money is created in our present system”. We showed how this same thing is also the reason why there is always a lot of investments into environmentally destructive projects and always lack of funding for ecologically friendly projects, renewable energies etc. In this follow up article, we want to posit a simple solution that would transform our financial system:

In-debt to a destructive economy

Monetary system problems

Those involved in the debates around Green Economy are probably familiar with the topic of decoupling economic growth and environmental problems. A lot has been written about slowing down growth, steady state economics, and even degrowth. There are different views on the transition path but the issue is that there can’t be infinite growth in a finite world. What is not usually in focus, however, is the underlying reason which makes growth inevitable and necessary. Might it be that this underlying cause is the money and banking system?