Series: IMF Working Papers
Author(s): Michael Kumhof , and Jaromir Benes
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 01 August 2012
Keywords: Chicago Plan, Chicago School of Economics, 100% reserve banking, bank lending, lending risk, private money creation, bank capital adequacy, private debt, boom-bust cycles, debt
At the height of the Great Depression a number of leading U.S. economists advanced a proposal for monetary reform that became known as the Chicago Plan. It envisaged the separation of the monetary and credit functi...