Monetary reform
Monetary reform is any movement or theory that proposes a system of supplying money and financing the economy that is different from the current system.
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Monetary reformers may advocate any of the following, among other proposals:
- A return to the gold standard (or silver standard or bimetallism).[1][2][3][non-primary source needed]
- Abolition of central bank support of the banking system during periods of crisis and/or the enforcement of full reserve banking for the privately owned banking system to remove the possibility of bank runs,[4][5][6] possibly combined with sovereign money issued and controlled by the government or a central bank under the direction of the government.[7] There is an associated debate within Austrian School whether free banking or full reserve banking should be advocated but regardless Austrian School economists such as Murray Rothbard support ending central bank bail outs ("ending the Fed").
- The issuance of interest-free credit by a government-controlled and fully owned central bank. Such interest-free but repayable loans could be used for public infrastructure and productive private investment. This proposal seeks to avoid debt-free money causing inflation.[8][9]
- The issuance of social credit – "debt-free" or "pure" money issued directly from the Treasury – rather than the sourcing of fresh money from a central bank in the form of interest-bearing bonds. These direct cash payments would be made to "replenish" or compensate people for the net losses some monetary reformers[who?] believe they suffer in a fractional reserve-based monetary system.[10][11]