Full Reserve Banking- Criticisms

Ann Pettifor

 * Reading: "Out of thin air - Why banks must be allowed to create money" (Link)
 * No objection to nationalising banks
 * Some Full Reserve banking proponents assume that "only money already saved should be made available for lending"
 * This is wrong because it assumes that money exists as a consequence of economic activity
 * Pettifor argues this is backwards- that economic activity is a result of Money (Credit) creation
 * Un-Democratic:  the key to the UK’s money supply lies with borrowing decisions made at a micro level by hundreds of thousands of economic actors. It is in this sense that ‘money creation’ is a bottom-up, even democratic, process
 * Implication- a central monetary authority would be prone to a top down undemocratic process.