Let's Watch the Swiss Get Radical and See What Happens
This far-out financial idea is worth a try — as long as somebody else goes first.
The real thing.
Photographer: Michele Limina/Bloomberg via Getty Images
This Sunday Swiss voters will decide whether to try what may be the boldest financial experiment ever contemplated — dismantling their orthodox banking system and building a new one based on so-called sovereign money, or Vollgeld.
The proposal is probably far too radical to have much chance of success. Yet that’s a pity. The idea of sovereign money isn’t crazy. It has a long and distinguished academic pedigree and, as a practical matter, there’s a lot to recommend it. Switzerland would do the world a favor by giving the plan a try. At the very least, give the Vollgeld sponsors some credit (forgive the expression) for reviving an interesting debate.