London.crafts wiki

This is a nice ribbing variant that lies flat, doesn't pull in as much as ordinary rib, and is quicker to work since half of the rows are just plain knitting. It may also be referred to as "garter rib" or "garter ribbing".

Cast on an even number of stitches.

• Row 1: K to end.
• Row 2: K to end.
• Row 3: K2, *(K1, P1), repeat from * to last 2 st, K2.
• Row 4: As row 3.

I found this stitch pattern at http://www.jimsyldesign.com/~dishbout/kpatterns/kitcottn.html ¹, where it's called "Kitchen Cotton Dishcloth" - see there for a photo. I am told that it originated on the old Lion Brand "Kitchen Cotton" labels.

¹ This link no longer works. Here is a photo of a scarf that I knotted using this stitch pattern: http://www.flickr.com/photos/natalief/2087073052/