FYI: An associate revisits earlier work on renewing a just financial system. In this new year we must sharpen our contribution to this urgent need. Comments are valued in relation to present thrusts and prospects for the scale of structural change we need.
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From: David PIDCOCK <firstname.lastname@example.org>
Date: Mon, 30 Dec 2019 at 16:58
Subject: BINARY ECONOMICS: ITS TIME HAS FINALLY COME – BRILLIANT! plus “THE 1936 CHICAGO PLAN” REVISITED BY AN IMF WORKING PAPER PROVES IRVING FISHER WAS 100% CORRECT, plus “SALVATION ISLAND”.
1. BINARY ECONOMICS has wrongly been criticised, which has kept people from looking at it seriously. As you will see, it fits the New Chartists’s criteria perfectly: www.binaryeconomics.net
2. IMF Working Paper Research Department THE CHICAGO PLAN REVISITED: Prepared by Jaromir Benes and Michael Kumhof and Authorized for distribution by Douglas Laxton August 2012 – This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
Abstract: 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. Irving Fisher (1936) claimed the following advantages for this plan: (1) Much better control of a major source of business cycle fluctuations, sudden increases and contractions of bank credit and of the supply of bank-created money. (2) Complete elimination of bank runs. (3) Dramatic reduction of the (net) public debt. (4) Dramatic reduction of private debt, as money creation no longer requires simultaneous debt creation. We study these claims by embedding a comprehensive and carefully calibrated model of the banking system in a DSGE model of the U.S. economy. We find support for all four of Fisher’s claims. Furthermore, output gains approach 10 percent, and steady state inflation can drop to zero without posing problems for the conduct of monetary policy. See the full paper here: http://ccmj.org/wp/wp-content/uploads/2020/01/IMF-CHICAGO-PLAN-wp12202.pdf
3. SALVATION ISLAND – SOCIAL CREDIT – THE MONEY MYTH EXPLODED 1932: The financial enigma resolved. A debt money system by Louis Even – paper prepared for Dr Naseem: http://ccmj.org/wp/wp-content/uploads/2020/01/SALVATION-ISLAND-FOR-DR-NASEEM.pdf