Język Polski
English
Published
:
2017-12-30
The Idea of Full-Money
Hermann Witte
Abstract
The article describes the idea of full-money, which is seen as a necessary measure to increase the security of the current money system. The concept is being discussed in Switzerland and is going to be put to the vote in a referendum in 2018 to determine how much political support there is for its implementation. The concept of full-money is also known as the full-reserve-system because it is assumed that 100 per cent of credits granted by credit institutions correspond to reserve money held in the central bank. This solution secures only one of the four parts of the money system. The amount of money available should vary more directly and be less affected by interest rate fluctuations compared to the actual money system. It has been known since the times of Friedman that a direct variation in the amount of money is a more effective way of controlling an economy. The full-money-idea is not based on a new monetary theory but merely provides more incentives to reach one of the objectives of the money system (monetary policy).(original abstract)Keywords:
Monetary system, Exchange rate policy, Value of money, Bank reservesMost read articles by the same author(s)
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Witte, H. (2017). The Idea of Full-Money. Zeszyty Naukowe Wyższej Szkoły Bankowej W Poznaniu, 77(6). Retrieved from https://journals.wsb.poznan.pl/index.php/znwsb/article/view/785