The Basis: Money as a Public Good

Abstract

This chapter proposes that money, being an equally essential and sensitive infrastructure for modern societies, should become a public good. However not in the classical meaning of economic text books but rather in the meaning that, firstly, the rules of the game of the monetary and financial system should be defined by the sovereign citizens. In this meaning, money would become a “sovereign good.” Thus, secondly, the sovereign citizens would become the issuers of money. Operatively, money should be issued exclusively by public central banks and remain in public property, whereas natural and legal persons can only use and “possess” it. The complete financial system becomes a public good which is guaranteed and regulated by the state, although the concrete services such as financial intermediation are operated by private banks. As a consequence, economic freedom is restricted in this sensitive area. Finally, the foundation values of the financial system are proposed in this section.