Merijn Knibbe — How the law enabled traders to change “Bills of exchange” into money

The post begins with a citation of the post here in Simon Wren-Lewis on money (and recognition of Minsky and MMT).What is most interesting and important is the latter half, which is on the international use of Bills of Exchange in accordance with the Joint Liability Rule (JLR), as well as how this facilitated commerce and resulted in a transition in means of credit payment grounded in personal trust to one based on law. At this point, a bill of credit is turned into "money," in that bills of credit issued covered by a JLR were widely transferrable and negotiable. Debt as money was commonly accepted.

Real-World Economics Review Blog
How the law enabled traders to change “Bills of exchange” into money
Merijn Knibbe