chapter  9
10 Pages

100% Money: Fisher's Version of the Chicago Plan

Though he became a very active proponent of the Chicago plan, or 100% Money, as Fisher referred to his version, he had a somewhat different view of both the purpose and impact of the reform. 1 The Chicago economists and Fisher were both concerned about monetary control and the safety of the payments system. However, the Chicago economists were more concerned than Fisher about a resurgence of inflation. The essential difference boiled down to a difference of opin-

Fisher on Booms and Depressions

If the foregoing analysis is correct, it is almost always economically possible to stop or prevent such a depression, simply by substantially

restoring the volume of money which has been destroyed, which means reflating to substantially the proper price level, and then maintaining that level unchanged. The creation of more money increases buying, which includes buying labor, i.e., re-employment, raises prices, increases profits and so, again increases employment. (Fisher [1935] 1945,128).