The myths and facts of ‘money creation’
Amsterdam, 1 June 2015
Banks play a central role in money creation. It’s a critical function to keep the economy moving. But how money creation works is frequently misunderstood. And whether it should be left solely in the hands of the banks has lately been the subject of a passionate debate in many countries, including the Netherlands.
To promote a better understanding of money creation and discuss differing points of view on who should be responsible for it, a lively public debate was held on Friday, 29 May in the Balie in Amsterdam, organized jointly by the Balie, the University of Groningen and ING.
ING Bank Vice Chairman Koos Timmermans delivered opening remarks at the Money Creation: Myths, Facts and Alternatives symposium. Additional input and perspectives in the debate came from Dirk Bezemer and Boudewijn de Bruin of the University of Groningen, ING economist Teunis Brosens, Martijn Jeroen van der Linden of the Ons Geld initiative, Aerdt Houben of the Dutch Central Bank and Dutch parliamentarians Wouter Koolmees (D66) and Arnold Markies (SP).
A particular subject of discussion was the Ons Geld citizens initiative and its call for money creation to be taken out of the private sector and put into government hands. The public in the full hall also took part, and showed clearly with their questions and remarks that the financial sector and its role in society remains high on the public’s agenda.