Abstract: The Currency School, represented by Loyd, Torrens, and Norman, proposed a significant reform in the banking system, as we saw in the previous chapter. This reform called for a monopoly in note-issuing by the Issue Department of the Bank of England while making the Bank adhere to a strict rule. The Currency School advocated this reform as the only cure for the shortcomings in the monetary regime that manifested themselves in recurring instability and repeating crises. Criticism of the Currency School proposals came from various quarters representing different perspectives; some came from parties that had a clear interest in preserving the status quo, but some came from critics who genuinely challenged the Currency School’s monetary theory. Those whose line of critique was most important and influential in the evolving debate soon became known as the Banking School.
Publication Year: 2010
Publication Date: 2010-11-22
Language: en
Type: book-chapter
Indexed In: ['crossref']
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