An economics, investment, trading and policy blog with a focus on Modern Monetary Theory (MMT). We seek the truth, avoid the mainstream and are virulently anti-neoliberalism.
The world is already mostly on digital money. Small spot transaction are settled in cash, but most spot is by credit card. Checks and epayments clear electronically. After intrabank netting, large banks use a clearing house for netting and final settlement of residuals is through the central bank. Any currency not held in physical cash resides on electronic spreadsheets at the central bank. Bank money created by lending is on banks' spreadsheets, the promise being to clear in the currency after netting. Banks must obtain the currency as reserves, that is, reserve balances at the cb or vault cash that is obtained by exchanging rb. Virtually all of this is now done digitally. We're there already.
This is a great piece. People need to keep hearing it over and over and over. An important notion missing, though, is that most people take pride in work, and in that sense, work is good. But we can be more expansive of our notion of what constitutes work as long as we are willing to compensate people for doing it.
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The world is already mostly on digital money. Small spot transaction are settled in cash, but most spot is by credit card. Checks and epayments clear electronically. After intrabank netting, large banks use a clearing house for netting and final settlement of residuals is through the central bank. Any currency not held in physical cash resides on electronic spreadsheets at the central bank. Bank money created by lending is on banks' spreadsheets, the promise being to clear in the currency after netting. Banks must obtain the currency as reserves, that is, reserve balances at the cb or vault cash that is obtained by exchanging rb. Virtually all of this is now done digitally. We're there already.
This is a great piece. People need to keep hearing it over and over and over. An important notion missing, though, is that most people take pride in work, and in that sense, work is good. But we can be more expansive of our notion of what constitutes work as long as we are willing to compensate people for doing it.
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