Is Public Funding Necessary? – Address by Jon Cunliffe

Today, I would like to discuss the concept of ‘public money’ and whether it is necessary. When referring to public money, I am specifically addressing the form of money issued by the state for everyday use, rather than public spending. This may initially appear as an unusual question, considering that in the UK, the Bank of England, a public institution, has been issuing money to the public for over three centuries. The banknotes, which bear the well-known “I promise to pay the bearer” pledge, are widely circulated and utilized by the public on a daily basis for various transactions. These notes and coins represent the currency of the UK, known as Pounds Sterling. It is the responsibility of the Bank of England, acting on behalf of the state, to ensure the stable value of the currency by maintaining inflation at its targeted rate of 2%.

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