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Uhh, the referendum talks about banning Private Banks from creating money. The Swiss National Bank will still have fractional reserves and will reserve the righ
by rdsubhas 11y ago
Uhh, the referendum talks about banning Private Banks from creating money. The Swiss National Bank will still have fractional reserves and will reserve the right to create physical and electronic money. So isn't that a good thing?
> If successful, the sovereign money bill would give the Swiss National Bank a monopoly on physical and electronic money creation, "while the decision concerning how new money is introduced into the economy would reside with the government," says Vollgeld.
> But over 90pc of money in circulation in Switzerland now exists in the form "electronic" cash created by private banks, rather than the central bank.
EDIT: Formatting
- stefantalpalaru 11y ago> The Swiss National Bank will still have fractional reserves and will reserve the right to create physical and electronic money. So isn't that a good thing? For the banks? It depends on how quickly the central bank is going to loan them new money. For the bank's customers who want their easy loans? Best case scenario - nothing changes, worst case - loans are now harder to get because the central bank is shy about increasing the money supply.