An Introduction in the Federal Reserve Money system

J.D. ALT, 2019
Level: beginner
Perspectives: Other, Post-Keynesian Economics
Topic: Money & Debt, North-South Relations & Development, Reflection of Economics
Format: Blog & Press

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.

Go to: An Introduction in the Federal Reserve Money system

This material has been suggested and edited by:

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Ce projet est le fruit du travail des membres du réseau international pour le pluralisme en économie, dans la sphère germanophone (Netzwerk Plurale Ökonomik e.V.) et dans la sphère francophone (Rethinking Economics Switzerland / Rethinking Economics Belgium / PEPS-Économie France). Nous sommes fortement attachés à notre indépendance et à notre diversité et vos dons permettent de le rester !