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Currency School versus Banking School: an ongoing confrontation

Goodhart, Charles and Jensen, Meinhard (2015) Currency School versus Banking School: an ongoing confrontation. Economic Thought, 4 (2). pp. 20-31. ISSN 2049-3509

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The Chicago Plan and Laina’s full-reserve banking proposal are themselves extensions of Ricardo’s earlier proposal for separating money creation from bank intermediation, as incorporated in the 1844 Bank Act. This was the key Currency School position, which was opposed then and subsequently by the Banking School. In this Commentary we outline the criticisms which Banking School supporters have made over the centuries of the Currency School, and indicate what alternative principles the Banking School has proposed.

Item Type: Article
Official URL:
Additional Information: © 2015 The Authors
Divisions: Financial Markets Group
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HG Finance
Date Deposited: 21 Oct 2015 09:55
Last Modified: 07 Sep 2021 23:16

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