Contributors: Weihmayr, Benedikt
Scientific paper contribution: 100% Money and Vollgeld, a Solution for a Stationary Economy? A Critical Analysis
Abstract: In the post-growth debate a rising number of authors advocate monetary reforms (100%-Money, Vollgeld), whose intention it is to prevent banks from creating deposits and establish the central bank as the sole issuer of money. This paper examines the expected macroeconomic consequences and the proclaimed benefits. I consider especially the assertions of authors, who argue that such reforms can smooth the way to a post growth economy including following benefits: reduction of growth imperatives, prevention from destructive credit-cycles, reduction of public debt, and increased public funds for financing ecological investments. I detect deficient growth imperative hypotheses and assess the reforms on the basis of some more elaborated and consistent growth imperative theories. A central issue in the context of a non-growth economy is the reduction of interest-rate-growth-differential. From a monetary-Keynesian perspective, I conclude that these reforms rather lead to higher interest rates and therewith worsen the conditions of reaching a stationary economy.