4 Comments
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Clint Ballinger's avatar

It is not so much what sits at the top of a monetary hierarchy and more which liabilities the state chooses to guarantee.

Logically the payments system should be separate from bank credit creation.

Much muddle comes from not recognizing this.

MMT_Michael's avatar

The next part in the series is up. Think this one is what you refer to.

Thanks for your feedback, I did put greater emphasis on the separation.

Tom McNabb's avatar

Bank credit creation depends on monopolization of the payments system.

Matthew T Hoare's avatar

I think the reality of government spending always creating new money is concealed because if people knew they would be more likely to try to avoid paying tax.