Tag Archives: Legal tender

NZZ, August 17, 2017. HTML, PDF. The Vollgeld initiative may point to a problem but it does not propose a viable solution. Even with Vollgeld, the time consistency friction with its Too-Big-To-Fail implication would persist. A more flexible, liberal approach appears more promising. It would give the general public a choice between holding deposits and reserves. Financial institutions and central banks around the world are pushing in that direction.

Dave Birch blogs about the concept of legal tender: a means to discharge debt. … you cannot force a retailer to accept legal tender or indeed any other form of tender. If, however, you buy something from them and there is no contractual barrier to the use of any form of tender, and you offer legal tender in payment, and they refuse it, then they cannot enforce the debt in court. That’s what legal tender means: it’s about discharging debts. If you incur a debt you can discharge it with...

Die Volkswirtschaft 1–2 2017, December 21, 2016. HTML, PDF. Banning inside money creation would be unnecessary, insufficient, not enforceable, and besides the point. The way forward is to grant everyone access to central bank reserves and let investors choose between reserves and deposits.

Kosten eines Vollgeld-Systems sind hoch Eine Umsetzung der Vollgeld-Initiative würde grossen Schaden anrichten und dürfte im Ergebnis selbst die Initianten enttäuschen. Verbesserungen verspricht dagegen eine «sanfte» Reform: die Einführung von elektronischem SNB-Geld für alle. Der Präsident des Vereins Monetäre Modernisierung Hansruedi Weber (Mitte) und zwei verkleidete Aktivisten reichen im Dezember 2015 bei der...

Kosten eines Vollgeld-Systems sind hoch Eine Umsetzung der Vollgeld-Initiative würde grossen Schaden anrichten und dürfte im Ergebnis selbst die Initianten enttäuschen. Verbesserungen verspricht dagegen eine «sanfte» Reform: die Einführung von elektronischem SNB-Geld für alle. Der Präsident des Vereins Monetäre Modernisierung Hansruedi Weber (Mitte) und zwei verkleidete Aktivisten reichen im Dezember 2015 bei der...

NZZ, November 29, 2016. HTML, PDF. Central banks are increasingly interested in employing blockchain technologies, and they should be. The blockchain threatens the intermediation business. Central banks encounter the blockchain in the form of new krypto currencies, and as the technology underlying new clearing and settlement systems. Krypto currencies bear the risk of “dollarization,” but in the major currency areas this risk is still small. New clearing and settlement systems benefit...

VoxEU, October 19, 2016. HTML. Central banks are increasingly interested in employing blockchain technologies. The blockchain threatens the intermediation business. Central banks encounter the blockchain in the form of new krypto currencies, and as the technology underlying new clearing and settlement systems. Krypto currencies bear the risk of “dollarization,” but in the major currency areas this risk is still small. New clearing and settlement systems benefit from central bank...