We present quantum Monte Carlo results for a square-lattice S = 1/2 XY-model with a standard nearest-neighbor coupling J and a four-spin ring exchange term K. Increasing K/J, we find that the ground state spin-stiffness vanishes at a critical point at which a spin gap opens and a striped bondplaquette order emerges. At still higher K/J, this phase becomes unstable and the system develops a staggered magnetization. We discuss the quantum phase transitions between these phases.PACS numbers: 75.10.Jm, 75.40.Mg, Ring exchange interactions have for a long time been known to be present in a variety of quantum many-body systems [1] and have been investigated rather thoroughly in solid 3 He [2]. They are also important for electrons in the Wigner crystal phase [3,4]. In strongly correlated electron systems, such as the high-T c cuprates and related antiferromagnets, ring exchange processes are typically much weaker than the pair exchange J [5] and are often neglected. Four-spin ring exchange has, however, been argued to be responsible for distinct features in the magnetic Raman [6] and optical absorption spectra [7]. Neutron measurements of the magnon dispersion have also become sufficiently accurate to detect deviations from the standard pair exchange Hamiltonian (the Heisenberg model) and such discrepancies have been attributed to ring exchange [8,9]. Recently, ring exchange has attracted interest as a potentially important interaction that could lead to novel quantum states of matter, in particular 2D electronic spin liquids with fractionalized excitations [10,11,12,13,14,15]. Furthermore, for bosons on a square lattice ring exchange has been shown to give rise to a "exciton Bose liquid" phase [16].Here we study the effects of ring exchange in one of the most basic quantum many-body Hamiltonians-the spin-1/2 XY-model on a 2D square lattice. We use a quantum Monte Carlo method (stochastic series expansion, hereafter SSE [17,18,19]) to study the low-temperature behavior of this system including a four-spin ring term. Defining bond and plaquette exchange operatorsthe Hamiltonian iswhere ij denotes a pair of nearest-neighbor sites and ijkl are sites on the corners of a plaquette. For K = 0 this is the standard quantum XY-model, or, equivalently, hard-core bosons at half-filling with no interactions apart from the single-occupancy constraint. This system undergoes a Kosterlitz-Thouless transition at T /J ≈ 0.68 [20,21] and has a T = 0 ferromagnetic moment M x = S x i ≈ 0.44 [22,23]. The K-term corresponds to retaining only the purely x-and y-terms of the full cyclic exchange.In a soft-core version of the pure ring model (J = 0), Paramekanti et al. recently found a compressible but non-superfluid phase (exciton Bose liquid) for weak onsite repulsion U [16]. As the hard-core limit is approached they found a transition to a staggered chargedensity-wave phase. Hence, the ground state of the spin Hamiltonian (3) can be expected to change from an easyplane ferromagnet with a finite spin stiffness ρ s and a magnetization M x at...