Money 101: Inside Versus Outside Money

In this video I go through a couple classifications that I have no covered, at least directly. They are, however, crucial to understanding the monetary system.

When I discussed this in the past, I used the terms "commercial bank money" and "central bank money" to separate. With this, we see how accounting enters the picture and negates the idea of money as debt. While there is a liability created, double-entry shows that we also see an asset created for the banking system. The same is actually true on the personal balance sheet.

This is inside money.