History has shown that regulation can too easily be undone, and can quickly become over-complicated, such that loopholes are created. For instance, the US’s regulatory update, the Dodd-Franks bill, now stands at nearly 9,000 pages, and is certain to be full of loopholes. A simpler approach is needed. Removing the power of banks to create money ensures that bank failures do not threaten the payments system on which the rest of the economy depends.
Posted in: 3. The Positive Money proposals