A Different View of Money and Banking
Chapter 1 – THE PROBLEMS OF BANK MONEY
The damages of the banking crises.
What banks do
Fragile money and Safe money
The two meanings of the invariability of value.
Banks and the financial system
The creation of money.
The most protected and intervened sector.
Inventory of privileges and protections
The prudential regulation. An almost “soviet” interventionism Supervisors and central banks.
Police and angels.
Diagnosis: Too much Market or too much State?
Chapter 2 – CHARACTERISTICS OF THE SAFE DIGITAL MONEY REFORM AND BANKING LIBERALIZATION
Safe Money is the essential element of the reform.
Characteristics of a Safe Money system
The functions of the Issuing Entity or Central Bank
The interest rate of money
Destination of money created by the Issuing Entity.
The separation of money from the financial system
The liberalization of the lending market and payment services.
Brief history of the idea of Safe Public Money
The regulation of the new system
Chapter 3 – BENEFITS OF SAFE DIGITAL MONEY
The end bank crises.
Breaking the money-debt marriage
A more efficient monetary policy
Distributive effects of monetary policies
Citizens get the benefits of creating money.
The separation of money from politics.
Economic power is distributed.
The benefits for the Euro and the European Union.
The benefits of the current system are maintained.
Chapter 4 – BENEFITS OF BANKING LIBERALIZATION
Why has the banking system not yet been liberalized?
The structural reform of the banking sector
More competition and more innovation.
Social objectives with better instruments
More diversity, less concentration
The market regulates better than regulators
Chapter 5 – DOUBTS AND CRITICISMS
Assessment, criticism and propaganda.
Will there be enough credit and investment?
Who will make the maturity transformation? Will monetary policy be difficult?
Does the reform imply greater nationalization?
Will the reform increase the instability of the banks?
Deception and fraud.
The protection of investors and users
Basel III is enough to avoid crises
Safe money will not end financial crises
The market will invent CBDC substitutes and we will not have solved anything.
Will the banks disappear with the reform?
Other radical reforms
A reform for all ideologies
Hayek’s advice to respect spontaneous orders.
The CBDC and the Rule of Law The design of the CBDC.
The “details” matter.
The CBDC is not a panacea
The importance of the transition.
Chapter 6 – THE FUTURE OF MONEY AND BANKING
The difficulties of a simple reform.
A reform in its infancy.
Reform or transformation?
What should and what will happen.
New technologies, money and banking
Praise the small reforms.
A reflection on Libra, the currency of Facebook
Learning from the past: other economic and political reforms
The future upside down.
Would we go back? (A fiction)
Annex 1. To understand Supervisors and Central Bankers.
Annex 2. The names of the money and its reform.
REFERENCES AND BIBLIOGRAPHY