The Experience of Free Banking outlines a monetary system where private banks issue competing banknotes, usually anchored to a commodity like gold or silver, replacing the central bank’s role.
The policy reaction to the Covid-19 pandemic will increase budget deficits massively in all the world’s leading countries. The deficits will to a significant extent be monetised, with heavy state borrowing from both national central banks and commercial banks.
There has been a great deal of debate recently about the availability and desirability of various financial instruments to deal with the fallout from the Corona crisis.