The American Empire in a Changing World


Monday, August 13, 2012

''IMF Backs Full Reserve Banking!''

From Positive Money

''We’ve been in a state of mild shock since Saturday. We discovered one of the strongest advocates of full reserve banking in the institution where we would expect it least.

The International Monetary Fund has released a paper “The Chicago Plan Revisited” that supports the proposals of Irving Fisher – those which are the basis for Positive Money’s proposals - using state of the art economic modelling.

In their summary the authors Jaromir Benes and Michael Kumhof write:
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.''

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