Economia
2012 International Monetary Fund WP/12/202
IMF Working Paper
Research Department
The Chicago Plan Revisited
Prepared by Jaromir Benes and Michael Kumhof
August 2012
Abstract
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 functions of the banking system, by requiring 100%
reserve backing for deposits. Irving Fisher (1936) claimed the following advantages for this
plan: (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
debt creation. We study these claims by embedding a comprehensive and carefully calibrated
model of the banking system in a DSGE model of the U.S. economy. We find support for all
four of Fisher's claims. Furthermore, output gains approach 10 percent, and steady state
inflation can drop to zero without posing problems for the conduct of monetary policy.
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Economia
Reforma do sistema monetário
2012 International Monetary Fund WP/12/202
IMF Working Paper
Research Department
The Chicago Plan Revisited
Prepared by Jaromir Benes and Michael Kumhof
August 2012
Abstract
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 functions of the banking system, by requiring 100%
reserve backing for deposits. Irving Fisher (1936) claimed the following advantages for this
plan: (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
debt creation. We study these claims by embedding a comprehensive and carefully calibrated
model of the banking system in a DSGE model of the U.S. economy. We find support for all
four of Fisher's claims. Furthermore, output gains approach 10 percent, and steady state
inflation can drop to zero without posing problems for the conduct of monetary policy.
Mais
loading...
- Política Monetária - "market Monetarism"
What's monetary policy and why does it matter? Monetary policy is how a central bank such the US Federal Reserve controls the amount of money in circulation. While managing the nation's money supply might seem like a dry, esoteric subject, economists...
- Metas Da Inflação
Inflation Targeting Hits the WallMises Daily:Wednesday, February 01, 2012 by Antony P. MuellerThe financial-market crisis is not over but has grown into a vicious sovereign-debt crisis. Nevertheless, monetary policy makers of the major economies go on...
- Database De Crises Financeiras 1970-2007
2008 International Monetary Fund WP/08/224 IMF Working Paper Research Department Systemic Banking Crises: A New Database Prepared by Luc Laeven and Fabian Valencia1 This paper presents a new database on the timing of systemic banking crises and policy...
- Ultimatum Para O Dólar
China encontra suporte de Brasil e Rússia para desafiar a posição do dólar como moeda de reserva internacional: "...There's a new power in international finance: Zhou Xiaochuan, governor of the People's Bank of China, the $2 trillion central...
- Corridas Bancárias Do Séc. Xxi
Corridas bancárias do séc. XXI são diferentes, como explica Tyler Cowen: "The new complication is that bank deposits are no longer the dominant form of modern short-term finance. The modern bank run means a rush to withdraw from money market funds,...