Joe’s Montpelier Talk, 4.8.09 Part 6: The Chicago Plan of 1933

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by Peter on August 21st, 2009

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FDR came to power in 1933, more than three years after the 1929 Crash. The national banking system was on the verge of total collapse, despite the Federal Reserve banking system being 20 years old. Fortunately, after the Crash, many economists saw the need for an alternative to the private Fed and it’s boom-and-bust prone fractional reserve banking system. These economists developed a proposal for complete monetary reform that would negate the Fed’s boom-bust cycle and impart soundness to the banking system. The Chicago Plan for Monetary Reform was sidelined in favor of Glass-Steagall and the FDIC. It’s time again for the Chicago Plan.

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