ABSTRACT
This chapter argues that it would better to do the opposite and reestablish money as a product of the spontaneous order created in a free society. Economic agents would hold monetary reserves – now identical with central bank money – with the banks, or they would make this money available to banks or investment trusts, in return for equity shares, to extend credit. The Neo-Austrians not only criticize the instability created by our present monetary order but also the abetting of debtors at the expense of creditors and receivers of nominal incomes, whose wealth and incomes are eroded in purchasing power terms. The majority in favor of reform wants to eliminate the private part and reconstitute money as purely a public good – sovereign money. In the debate of monetary reform in England towards the end of the seventeenth century he used his influence to enforce material coverage of bank notes.
