Reform of the banking monetary system: The swiss proposal

The international banking system has been under greater public scrutiny since the 2008 financial crisis, which once again highlighted its vices and weaknesses. This article aims to provide a general understanding of the proposed Swiss banking reform labelled monnaie plaine its basis and the discussion it has aroused. The Swiss initiative on which a referendum was held on 10 June 2018 (it was defeated) could help market economies worldwide break out of the trap of current monetary creation policies by taking away the power of commercial banks to issue electronic currency in the form of demand deposits that now amount to ninety per cent of all monetary instruments and distort the real economy by making it dangerously volatile