Re: A fractional Reserve
Im not sure why this is so, but I guess that why it is an issue right now in the US is because og the huge public debt. Less people worried about it when everything was going ok, and few people argue against the fiat money system in a time when that money system is occuring in a time of clear visable growth. The growth in the economies in the western world during the time of fiat currency has been unprecedented to any other time in history, would this growth have been ashuge if the money supply was limited?
Other countries have had big debts as well, Sweden have managed to bounce back from their considerable debt in the mid 90s without chaninging their money system, and I believe France, Germany and Japan are not that much better off than the US is debt-wise.
The need of a federal bank and fiat money is as far as I know a non-issue in Europe, and people look elsewhere to explain why the economy sometimes go downhill.
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