The Chicago Plan Revisited

In this video economist Michael Kumhof shows that full reserve banking is not only possible but it actually work in a modern capitalist economy and that it is more stable than the current fractional reserve banking system.

The important point of the Chicago plan is that government and not private banks should control the money supply by issuing debt-free money. In order the do so, fractional reserve banking should be prohibited.

The paper referred to in the video can be found here.

For a more elementary introduction to modern banking, we refer to the videos by Richard Werner.

One thought on “The Chicago Plan Revisited”

  1. I did watch a bit of the video. I got as far as him saying “tinkering with the plumbing of the system instead of resigning the system from the ground up”. 🙂

First comment? Please read our comment policy first

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.