The Fed’s policy tools – interest rate manipulation, quantitative easing, and “Special Purpose Vehicles” – have all failed to revive local economies suffering from government-mandated shutdowns. . The Fed must rely on private banks to inject credit into Main Street, and private banks are currently unable or unwilling to do it. The tools the Fed actually needs are public banks, which could and would do the job.
Self-regulation by statue and by-laws, a public bank as an LLC, the banking corporation model doesn’t fit, public banks for non-home rule communities, public banks as public benefit corporations and cooperatives
This blog will address a few of the most basic questions asked about public banking. It will also provide a brief overview of the basics of Public Banking and a few of its key advantages. Public Banking is a powerful tool that, at its core, is about keeping community money working for the benefit and the values of the community within the community.