Making Money Work: How to Rewrite the Rules of Our Financial System

Summary

In Making Money Work: How to Rewrite the Rules of Our Financial System, Matt Sekerke and Steve H. Hanke deliver a rigorous and fascinating exploration of the monetary economy. You'll find a detailed and clear roadmap of how and why fiat money is created and destroyed, its connections to the broader economy, and the objective mechanisms that underwrite and maintain its value.

In their exploration, Sekerke and Hanke solve many problems and puzzles and shed light on several important questions:

● Why economists misunderstand the structure and function of the monetary system

● The central role of the commercial banking system in fiat money regimes, and why commercial banks are not like other financial intermediaries

● The economic and regulatory constraints on bank money creation

● How the "banks" that dominate the international financial landscape distort the lines between banking and capital markets business

Sekerke and Hanke also trace important post-crisis policy developments and sketch the broad strokes of a new operating model that would restore the performance of the monetary system and make better use of aggregate savings.