Economics of Liberty

5 Things You Need to Know about Iceland’s Fractional Reserve Banking Scheme

By Drew Rush

#1. Prime Minister Considers 100% Currency Reserves

Recently, the Prime Minister of Iceland commission a study aimed at monetary reform in his country. Frosti Sigurjonsoon[1], an Icelandic member of parliament, conducted this study and is advocating for a 100% reserve for their country’s currency. In other words, abolish fractional reserve banking and don’t allow banks to make new money. But is it a good idea and does it have a chance?

[1] @frostis on twitter

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