Proposals for Full-Reserve Banking: A Historical Survey from David Ricardo to Martin Wolf
Economic Thought 4 (2), 1-19, 2015
Posted: 9 Nov 2017
Date Written: 2015
Full-reserve banking, which prohibits private money creation, has not been implemented since the 19th century. Thereafter, bank deposits became the dominant means of payment and have retained their position until today. The specific contribution of this paper is to provide a comprehensive outlook on the historical and contemporary proposals for full-reserve banking. The proposals for full-reserve banking have become particularly popular after serious financial crises.
Keywords: full-reserve banking, monetary reform, sovereign money, Chicago Plan, history
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