Sovereign Money - Beyond Reserve Banking

Abstract

coming to terms with today's unresolved financial problems, little attention has been paid to the money system and how it is at the root of financial crises. This book provides an up to date outline of the workings of the money and banking system, illustrating the various forms and issuers of money, and discussing money theory and fallacy past and present. It also looks at related economic challenges such as inflation or asset inflation and bubble building that lead to market instability and examines the ineffectual monetary policies and primary credit markets that are failing to reach some sort of self-limiting equilibrium. The concluding part of this book is dedicated to future perspectives, advocating a move towards a plain sovereign money system. Money creation should be made the sole responsibility of central banks as independent monetary authorities, on the basis of an overhauled legal mandate and restated policy objectives. This includes a thorough separation of monetary and fiscal powers, and of both from banking and wider financial market functions. This book provides a welcome addition to the money and banking literature, guiding readers through the inner workings of our monetary and financial environments and proposing a new way forward that will better protect the economy from financial instability and crisis.