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Investigating the “Debt-Money-Prices” Triangle: Irving Fisher’s Theoretical Journey Toward the 100% Money Proposal

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  • Demeulemeester, Samuel

Abstract

This paper aims to show how the 100% money proposal, which Irving Fisher came to support in 1935, connects to the rest of his work on monetary instability—in particular, to his credit cycle analysis of 1911, and his debt-deflation theory of 1932-33. Behind these respective analyses, we identify a common explanatory pattern of monetary fluctuations, the “debt-money-prices” triangle, which we use to show how Fisher’s explanations evolved over time, and how his advocacy of 100% money came as a logical conclusion.

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  • Demeulemeester, Samuel, 2024. "Investigating the “Debt-Money-Prices” Triangle: Irving Fisher’s Theoretical Journey Toward the 100% Money Proposal," SocArXiv tfm6v, Center for Open Science.
    • Handle: RePEc:osf:socarx:tfm6v
    DOI: 10.31219/osf.io/tfm6v
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    1. Rebeca Gomez Betancourt & Jérôme de Boyer des Roches, 2013. "Origins and developments of Irving Fisher's compensated dollar plan," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 20(2), pages 261-283, April.
    2. Ronnie J. Phillips, 1994. "An end to private banking: early New Deal proposals to alter the role of the federal government in credit allocation," Proceedings, Federal Reserve Bank of Cleveland, pages 552-571.
    3. George S. Tavlas, 2015. "In Old Chicago: Simons, Friedman, and the Development of Monetary‐Policy Rules," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 47(1), pages 99-121, February.
    4. King, Mervyn, 1994. "Debt deflation: Theory and evidence," European Economic Review, Elsevier, vol. 38(3-4), pages 419-445, April.
    5. Fisher, Irving, 1907. "The Rate of Interest," History of Economic Thought Books, McMaster University Archive for the History of Economic Thought, number fisher1907.
    6. Minnie Throop England, 1912. "Fisher's Theory of Crises: A Criticism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 27(1), pages 95-106.
    7. Samuel Demeulemeester, 2018. "The 100% money proposal and its implications for banking: the Currie–Fisher approach versus the Chicago Plan approach," The European Journal of the History of Economic Thought, Taylor & Francis Journals, vol. 25(2), pages 357-387, March.
    8. Tavlas, George S., 2021. "A Reconsideration Of The Doctrinal Foundations Of Monetary Policy Rules: Fisher Versus Chicago," Journal of the History of Economic Thought, Cambridge University Press, vol. 43(1), pages 55-82, March.
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