In short, make these ideas out of any money in circulation is created in the Bank or by the governm

Progressive Party candidate in the first place in Reykjavík atif aslam wedding north, frozen Sigurjónsson, has spoken considerably in the election campaign of the so-called "better monetary system", also called total reserves system, "positive money" in English.
In short, make these ideas out of any money in circulation is created in the Bank or by the government. Private banks can only lend the money has been deposited into them, and then and only funds the owner is satisfied that his money is re-loaned. Otherwise, the money just kept on behalf of the owner of the deposit account at the Central Bank. Interest is only paid on-lending denominated deposits but then takes funds owner also higher, and conscious atif aslam wedding risk money.
This means that any money will be a decision of some kind of central council atif aslam wedding or committee, either in Central or government, in order to become part of the lending banks in the open market. atif aslam wedding In certain versions of the concept are the new money into circulation by the state receives the disposal and delete them. In other versions, the new money distributed to everyone in society if and when necessary. Indeed, the highest embodiment of the system in this direction has become very similar to socialism.
My doubts about these ideas include the following: The system is now in place, violations release system (fractional reserve banking), has been in use in central banks and the West, and then the whole world for over 300 years. This arrangement has supported the tremendous progress, innovation, specialization, productivity and economic growth at the time. Certainly atif aslam wedding have been setbacks along the way and have learned a lot about how the control system needs and monitor. But such a fundamental basics of the economy is not doing Impulsive, but only to a very well studied and consideration and preferably in international co-operation. Total Transdermal System has never been tried, and the consequences are unknown for the balance of the economy. Taking it up in Iceland, first of all countries, it is very risky. Total Transdermal System is overly radical approach to tackle the alleged problem of fraction reserve system solved. It is equivalent to fix the reserve requirement banks once and for all in 100% of their deposits. Reserve requirements in today's 2%, and it may be changed by regulation. There is nothing to prevent the current system to raise reserve requirements atif aslam wedding for any number between 2% and 100% if it is believed to be sensible. It is unclear what should be won by losing flexibility. Similarly, there is nothing to prevent the current system to establish a bank or savings depending on the rules of the total reserves of the system, ie proposes atif aslam wedding deposits directly into the Central Bank loan they otherwise out without gearing. atif aslam wedding If the actual demand for such banking is nothing atif aslam wedding in the way that it is met. It is out of these ideas to the central expected that decides the quantity of money is "independent" and "professional". It is difficult to ensure the implementation of the long term as this would cause the Council very much - could make money out of nothing! - And exposed to all kinds of pressure the government and stakeholders. If all the new money is placed in circulation through the Treasury determines priorities state even more than the investment and construction. (This gave a brilliant success with Stalin. Or maybe not.) If you take the whole reserve system "all the way" has to prevent indirect financial leverage money. Such indirect financial leverage could consist of the shares in a company or units in money market funds will be equivalent to the transmission of money and running between people as currency. Would have to very difficult and don'ts if in order to avoid for this. In this model, the total reserves system atif aslam wedding is the most referred atif aslam wedding to (see, eg, p. 37) is assumed for the dramatic shift in the financing of companies, which would almost exclusively use shares instead of credit. (Provided that it shares other prescriptions gears money and undesirable as such.) If this is the case in Iceland, one of the countries, there is a risk that international business transfer with a great slaughter of the country. Their financing would otherwise inadequate and inflexible atif aslam wedding financing competitors, and not in accordance with the best capital structure obtained by a combination of credit and equity. Similarly, should the banks below the reserve system in great difficulty to compete with credit from foreign banks with a fraction release system. Grab be available, prohibit and controls to maintain the "purity" of the national total reserves system atif aslam wedding and the economic power of the central monetary council. The danger is that a large part of the money supply would be available at any time in hand, demand deposits with the Central Bank and only a small part of it was in time deposits, which were available for loans or investments. This would reduce the supply of credit and risk capital in the economy, which in turn reduces investment and construction.