We should seriously consider revisiting “The Chicago Plan” of the 1930s which separates the monetary and credit functions of the banking system

In the wake of the Great Recession, anxiety over monetary and financial systems is the highest it has been since the 1930s. Concerned with the lack of creativity of modern solutions, Michael Kumhof reexamines a monetary reform proposal from the 1930s called “The Chicago Plan.” He argues that it contains six advantages to the current system and few disadvantages, making it worthy of serious consideration.