Michael Kumhof

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    Income inequality causes higher debt leverage among all but the richest households, and makes economies more vulnerable to financial crises.  

Income inequality causes higher debt leverage among all but the richest households, and makes economies more vulnerable to financial crises.  

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The Great Recession, which began in 2008, was an economic upheaval the likes of which had not been seen since the Depression 80 years prior. In a new study which compares the lead-up to the Great Recession with the Great Depression, Michael Kumhof (with Romain Ranciere and Pablo Winant),  finds that the growing inequality and the increasing household debt that […]

May 12th, 2015|Economy, Michael Kumhof|2 Comments|
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We should seriously consider revisiting “The Chicago Plan” of the 1930s which separates the monetary and credit functions of the banking system.

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In the wake of the Great Recession, anxiety over monetary and financial systems is the highest it has been since the 1930s. Concerned with the lack of creativity of modern solutions, Michael Kumhof reexamines a monetary reform proposal from the 1930s called “The Chicago Plan.” He argues that it contains six advantages to the current system and few disadvantages, making […]

November 25th, 2013|Economy, Michael Kumhof|2 Comments|
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