The Chicago Plan Revisited

Michael Kumhof will discuss his 2012 paper on the Chicago Plan, a radical reform plan for the banking industry that would eliminate banks’ power to create money. Based on proposals developed by members of the Chicago School in the US in the 1930s, Kumhof’s plan represents the most far-reaching and decisive proposal to eliminate the risks associated with fractional reserve banking.

Michael Kumhof is deputy division chief of the Modelling Division at the IMF Research Department.