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Countries do not control their own currencies - Four books and a paper.

In 1956, Carlo Cipolla, an Italian medievalist, published five short lectures under the title Money, Prices and Civilization in the Mediterranean World.

The dollars of the middle ages, the high-value gold florins and ducats of the Italian city states, accepted and copied from Constantinople to the Rhineland.

Money, Prices and Civilization is accidentally the single-best explanation of how money works now, today, in our current economy.

A paper published in August by two political economists — Rethinking Monetary Sovereignty: The Global Credit Money System and the State. 

Just as was true for Cipolla’s medieval Europe, the paper argues that it is unhelpful for states to believe that they issue and control their own money.

Deposits at commercial banks, created every time a bank makes a loan. A deposit is a private decision by a private actor, but the state can regulate the bank, or discourage new loans by raising interest rates.  

Brendan Greeley  FT 10 September 2022



Rethinking Monetary Sovereignty: The Global Credit Money System and the State. 


What to read to understand central banking. Four books and a paper.

The Economist 7 September 2022


Fed does not create most of the money in the U.S. economy

 The private sector does. The Fed has tolerated dangerous changes in the way this is accomplished.

The Fed has helped to erode this system by tolerating, since the mid-20th century, the expansion of a wide range of nonbank money creators.

Joseph C. Sternberg WSJ 1 August 2022


Banks create money when they lend. They also create money when they buy coffee machines 

Frances Coppola 3 September 2021

“The process by which money is created is so simple that the mind is repelled.”


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