Chicago Plan – why it never went anywhere
Debunking Economics - the podcast
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The Consensus of the Chicago Plan
Banks should liquidate their assets, pay off liabilities and dissolve all existing banks. A new institution should be created which accepted only demand deposits subject to a 100% reserve requirement in lawful money or deposits with the reserve banks. The idea would be that the banks would then have this reserve that they had replenished by the government and they could lend it out of that fund. But there would be a fixed amount that they could create by loans. They'll put into circulation by loans.
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