> private banks shouldn't lend out more money than what they have (as customers' deposits)
The proposal is to eliminate fractional-reserve banking, which usually requires public accounts at the central bank [1][2], though in practice, there is no reason each state couldn’t open an account at the Fed, to keep the Fed out of the business of retail banking.
The proposal is to eliminate fractional-reserve banking, which usually requires public accounts at the central bank [1][2], though in practice, there is no reason each state couldn’t open an account at the Fed, to keep the Fed out of the business of retail banking.
[1] https://www.econstor.eu/bitstream/10419/197911/1/1043494065....
[2] https://www.reuters.com/article/us-swiss-vote-sovereign/swis...