Abracadabra, No More Banking Crisis
October 22, 2012 10:48 AM Subscribe
IMF Economists are suggesting
posted by COD (57 comments total)
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that The Chicago Plan
, first proposed in 1936 as a way to avoid another Great Depression, is the answer to our current economic woes.
Specifically, they studied the (theoretical) primary benefits of The Chicago Plan and found all 4 would likely result from the adoption of this system in the US.
(1)Much better control of a major source of business cycle fluctuations, sudden
increases and contractions of bank credit and of the supply of bank-created money.
(2) Complete elimination of bank runs.
(3) Dramatic reduction of the (net) public debt.
(4) Dramatic reduction of private debt, as money creation no longer requires simultaneous
Link to the source paper
, which includes a prominent disclaimer that this is a working paper and represents the opinions of the author, not the IMF.