Financial reform

New economics regards finance as a means, not an end. Its role is to provide a support for other areas of the economy. It should underpin the productive economy of shops, manufacturers and food producers. And it should support society's vital operating systems: the core economy of family, neighbourhood and community, and the natural economy of the biosphere, our oceans, forests and trees.

But the current financial system fails to do this most basic task. As the credit crunch of 2008 made clear, the sheer profitability of finance has corroded these other areas of the economy. Finance has become a monoculture, populated by a few giant companies, and as such is prone to instability and collapse. nef believes we need a diverse ecology of finance, with different institutions, of all sizes, performing a variety of specialised jobs.

nef works on economic policies and financial models which support inclusive, fair and sustainable economic activity. We believe that banks often work better when they're embedded in communities, in the middle of local economic life, and we support policies, such as the USA's Community Reinvestment Act, which bring banks closer to the needs and lives of everyday people.