(Original post by anarchism101)
My personal opinion, however, is that fractional reserve banking is fundamentally flawed regardless of whether we use gold in it or not.
Last edited by PicardianSocialist; 14-05-2012 at 23:34.
Probably not. Banks would probably look after your money for free, so that you like them and then will allow them lend out your money. They might charge, they might not. As money would likely be digital the cost of looking after it would likely be so small that they need not charge to look after your money.
(Original post by Раскольников)
I guess if the bank was to have 100% reserves then you have to pay them to look after your money
It would not be like in the olden days when money was an actual commodity and need a small fort to protect it and loads of armed guards.
That is full reserve banking. The depositer is legally entitled to money that is actually in the bank and can access it at any time.
say 10%, but only allows a depositor to withdraw that same fraction within a given time period?
That way it would be possible for savings to be used for investing, but without the risk of a run on the banks. And then people could presumably choose what fraction they want depending on how much they value the interest on their deposit vs the ability to have easy access to their money.
Last edited by Classical Liberal; 15-05-2012 at 11:15.