Proposals for Full-Reserve Banking: A Historical Survey from David Ricardo to Martin Wolf
Patrizio Lainà ()
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Patrizio Lainà: Department of Political and Economic Studies, University of Helsinki, Finland
Economic Thought, 2015, vol. 4, issue 2, 1
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.
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