The 100% money proposal and its implications for banking: the Currie–Fisher approach versus the Chicago Plan approach

Samuel Demeulemeester (1)

1 TRIANGLE - Triangle : action, discours, pensée politique et économique

The literature on the 100% money proposal often reveals some confusion when it comes to its implications for the banking sphere. We argue that this can be partly explained by a failure to have distinguished between two divergent approaches to the proposal: the “Currie–Fisher” (or “transaction”) approach, on the one hand, which would preserve banking; and the “Chicago Plan” (or “liquidity”) approach, on the other hand, which would abolish banking. This division among 100% money proponents stemmed, in particular, from different definitions of money, and different explanations of monetary instability. The present paper attempts to clarify this divergence of views.

Keywords: Chicago Plan; Lauchlin Currie; banking; 100% money; Irving Fisher

Domains: Economics and Finance

Samuel Demeulemeester. The 100% money proposal and its implications for banking: the Currie–Fisher approach versus the Chicago Plan approach. European Journal of the History of Economic Thought, 2018, 25 (2), pp.357-387. ⟨10.1080/09672567.2018.1435706⟩. ⟨hal-01830363⟩