Definitions Money is an asset that serves as a medium of exchange. Outside money is money that is either of a fiat nature (unbacked) or backed by some asset that is not in zero net supply within the private sector of the economy. Thus, outside money is a net asset for the private sector. The qualifier outside is short for (coming from) outside the private sector. Inside money is an asset representing, or backed by, any form of private credit that circulates as a medium of exchange. Since it is one private agent's liability and at the same time some other agent's asset, inside money is in zero net supply within the private sector. The qualifier inside is short for (backed by debt from) inside the private sector.
CITATION STYLE
Lagos, R. (2010). Inside and Outside Money. In Monetary Economics (pp. 132–136). Palgrave Macmillan UK. https://doi.org/10.1057/9780230280854_17
Mendeley helps you to discover research relevant for your work.