The German Bundesbank has recently released an interesting report on the role of banks, non-banks, and the central bank in the money creation process. We have a few issues with the Bundesbank article; however, the majority of the analysis is good. More importantly, the conclusions drawn from the report by news outlets and the blogosphere are misleading.
Ultimately, full-reserve banking is different from Sovereign Money and the recent wave of civil society initiatives calling for the power to create money to be granted exclusively to a democratic, accountable, and transparent public body.
In this blog, we want to set the record straight and highlight the main differences between Sovereign Money and other full-reserve banking proposals. In an upcoming blog, I will
— source positivemoney.org | Frank Van Lerven | 2017/04