‘Full Money’ (Vollgeld in German) is similar to the 100% Money proposal, in that the direct link between money and credit is broken and the power to create new money is invested solely in the central bank. Assuming “the monetary system is unmistakably part of the common legal order” and not just “the operation […]

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In 1935 during the worldwide Great Depression, economist Irving Fisher published a proposal for 100% Money, meaning one hundred per cent backing of bank deposits with central bank money (Fisher, 1935: for the history of Fisher’s proposal and his political strategy see Allen, 1993). This is also known as the Chicago Plan, because it was […]

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  Modern Money Theory claims to be the first empirically supported account of how the modern “fiat” money system works. According to MMT, non-cash commercial bank loans are promises to pay which, by their very nature, are not subject to money supply constraints. MMT’s view of how the credit mechanism works has since been confirmed […]

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