An Introduction in the Federal Reserve Money system

J.D. ALT
NewEconomicsPerspectives.org, 2019
Level: beginner
Perspectives: Other, Post-Keynesian Economics
Topic: Emerging economies, history of economic thought, money & debt
Format: Blog
Link: http://neweconomicperspectives.org/2019/10/the-peoples-money-part-1.html

This Blog Post describes the U.S. federal reserve money system from the perspective of the Modern Monetary Theory (MMT). Therefore it presents a theory of money creation, gives simple examples how this influences the economy and the historical process of why the monetary system of the US has developed this way.

This Article divides the money in a country in Reserves created by the Central Bank, in Federal Reserve Notes as cash money and in bank-dollars which are created by the private Banks. Especially the dynamics between Reserves and bank-dollars are important to understand the functioning and issues of the US monetary system.


This material has been suggested and edited by:

Spenden

Um sich weiterhin für Pluralismus und Vielfalt in der Ökonomik einzusetzen, benötigt das Netzwerk Plurale Ökonomik e.V. Unterstützung von Leuten wie dir. Deshalb freuen wir uns sehr über eine einmalige oder dauerhafte Spende.

Spenden