4min chapter

Debunking Economics - the podcast cover image

Chicago Plan – why it never went anywhere

Debunking Economics - the podcast

CHAPTER

The Chicago Plan to Stop Bank Runs

The IMF wrote a paper about the Chicago Plan in 2012. The idea was that having fully reserved banked deposits, I guess they are, would completely eliminate bank runs. They're by increasing financial stability and allowing banks to concentrate on their core lending function without worrying about instabilities originating on the liabilities side of the bank sheet. It's also tied up with the fallacies that mainstream economics has about how banks actually operate. So I would like to have something which meant bank lending was for unavoidable the large consumption items, working capital for corporations and genuine investment. That's what I'd like to see. Whether the Chicago plan is put forward would actually get you there. I'm just not sure.

00:00

Get the Snipd
podcast app

Unlock the knowledge in podcasts with the podcast player of the future.
App store bannerPlay store banner

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode

Save any
moment

Hear something you like? Tap your headphones to save it with AI-generated key takeaways

Share
& Export

Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more

AI-powered
podcast player

Listen to all your favourite podcasts with AI-powered features

Discover
highlights

Listen to the best highlights from the podcasts you love and dive into the full episode