A monetary system conceived and introduced around 1970, especially by the economist Friedrich August von Hayek, in which several banks are allowed to use the same
currency unit into circulation. According to the AntiGresham’s Law, the most stable money would prevail very quickly. Every money-issuing bank would therefore be forced to pursue a prudent business policy so that the money it puts into circulation does not disappear from the payment system. – In the wake of the financial crisis that followed the subprime crisis, the idea of a market money – even recognized worldwide – was revived. The unanimous opinion was that only coins made of precious metals – especially gold – and banknotes backed by precious metals would prevail. However, payment could also be made as usual by check, bank transfer or card. The difference to today’s state money system would be that the money supply could no longer be expanded at will by granting credit. – In fact, precious metals have already taken over the function of money as a store of value worldwide, at the latest since the financial crisis that followed the subprime crisis. – See Banking Theory, Currency Theory, Specialist Banking System, Free Banking, Parallel Currency.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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