[fnl]

Just to expand on the above, as two days later I now feel it is hard to understand how my reply is related to imtringued‘s last paragraph (“if you can fix the asymmetry or eliminate the zero lower bound it doesn't actually matter what form your money takes”):

If you don’t allow banks to “print debt” out of thin air by eliminating fractional reserve banking, as Daly suggested in his work, I believe you eliminate that asymmetry. Actual money is lent, actual money has to be returned.

The question that remains then is if it is valid to ask for interest on that money. But I believe that is acceptable, and the rate might be set to 0% or even negative in the right circumstances.