The future of banking (Flash Ensayo)

A reflection on the fragile banking sector nowadays and the possibility of progressing towards a system of public and safe money, issued by the Central Bank.

Miguel A. Fernández Ordóñez introduces his text with a quote from Mervyn King, former governor of the Bank of England: «Among all ways of organizing the banking system, the one that we have today is the worst.»

Ordóñez shares his opinion and he proposes a radical change within the banking system: a Central Bank which would be the only one authorized to create money. His reform would allow families and companies to deposit their money in the Central Bank, something that exclusively private banks do today. Thus, only real money would be employed, far away from the «fictive money» or «promise to give back...