The creation of new money performs an essential if largely invisible function in our economy and society. Moreover, with the transition from the dominance of coins and paper as money to bank deposits as money, the mechanisms through which money is made and controlled have changed fundamentally.
In its study the Netherlands Scientific Council for Government Policy (WRR) looks at the different aspects of money creation and explores the pros and cons of alternative systems of money creation and more limited reforms. The project is the result of a formal request from the Dutch Minister of Finance for an advisory report on the functioning of the monetary system. A motion on this topic was adopted by the Dutch Parliament during a debate on the citizen initiative ‘Our Money’ (‘Ons Geld’). The WRR conducts this research on the basis of scientific literature, insights from abroad and interviews with civil-society parties, the financial sector and those in central banks and the scientific community.